In and out

Many people find it difficult to manage their finances properly and as a result end up in debt or living from paycheck to paycheck. They think that a raise is going to solve all of their problems. They keep on working hard every day, but when the promotion finally comes they find themselves no better off than they were before. In fact, many end up being even worse, as the increase in cost of their lifestyle exceeds the increase in their income. And so the cycle repeats itself ad infinitum, never letting the poor sods off the hook.

 

The thing that life coaches, personal managers, and various other accounting experts usually suggest in this situation is to keep a budget of your finances. But keeping a budget is not a solution in and of itself, it is just a technique that helps one be more mindful about one's spending. The simple act of writing down all the stuff you buy is useless. What makes it helpful is acknowledging where the money goes. But mindfulness can also be achieved without a budget. All one needs to do is critically appraise all of one's purchases at the time they are made.

 

The simplest advice I can give in this situation is stop wasting money on useless shit. But that's easier said than done. So here are some tips for better spending:

• Avoid impulsive spending. If you want to buy something, sleep on it. If you still think it's a good idea tomorrow, go ahead. Sellers recognize this as a source of profit and try to lure you in with "hot deals" with a limited time frame. Most of those deals are scams. Don't be a sucker.
• Don't fall for advertising. Fuck brand loyalty. Before making a purchase, examine the products of competitors and choose whichever gives you the most bang for your buck. If it's an important decision, consider making a comparison chart.
• If it doesn't spoil and you consume it regularly, buy it in bulk. Saves a lot of money and the time you spend on buying it again.
• When buying electronics, look at the warranty period. Assume that it breaks as soon as the warranty expires. Calculate utility based on that.
• When showing off is not the primary goal, choose function over fashion. Maximize utility of your purchases.
• If the utility you can extract from it before you are able to fully afford it does not exceed the interest, don't buy it on credit.
• Check the prices across different stores. Don't fall for fake sales and offers. Make use of real sales and offers.
• If you don't particularly care about the shipping time and build quality, consider ordering it from AliExpress or similar services.
• Make use of coupons and promo codes where applicable. There are plenty of websites dedicated to finding the best deals.
• Don't overlook cashback deals. Investigate which cards can provide you with the best offers and get them.
• Never pay for copies of information, unless you want to support the producers of the original. Even then it would be better to donate money to them directly if possible. This cuts out the middlemen and avoids promoting fraudulent business practices. Copyright law is a carte blanche to defraud people.
• Don't be afraid of DIY solutions. You'll be surprised how much you can accomplish if you just give it a try. Build your own PC. Learn to cook. Assemble furniture yourself.
• Don't cut corners on durability and security. You will likely end up paying more in the long run. If you utilize it regularly, choose the option with the best build quality within your price range. If there is a high amount of potential risk involved, insure it.
• If you can spend a bit of money now to avoid spending a lot of money later, do it.
• Don't buy something just because it seems cool. Think of why you need it.
• If it increases your income, calculate its depreciation time. If it's worth it, get it.
• Don't spend your time saving money on something if you can use it to make more money than you can potentially save. For many people this can nullify some of the previous tips.

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