Rule number two: never skip rule number one. These are words by Warren Buffet, who is one of the richest people in the world. Don’t waste money. Do you know why?
It doesn’t take too much effort to see that they rip you off
It doesn’t take too much energy from you to see that someone is trying to rip you off and make profit on you. There is also no point in wasting money you have earned so hard on things that doesn’t deserve it. After spending too much cash on things and fees you don’t need – you can get to a point where you understand importance of looking after your money. That throwing money into the toilet is something beyond making wrong decisions. That it’s a pure stupidity.
When I get to that point? When I wanted to realize my check from United States in Poland. It turned out to be a big problem, and the only bank which wanted to do it wants too much money.
If a product it’s identical, what’s the point of paying double for it?
If you have two things to choose between, for example underwear like socks. And you have two identical pairs of them – one costing 5$ and second one for 10$. The only difference between them is more beautiful packaging and a “premium” label. Which one would you choose: cheaper or more expensive one? Why? Because five bucks don’t matter?
Now count how much do you lose when you waste such five bucks three times a day. For a coffee in Starbucks, for an overpriced lunch and for a taxi. It’s 15$ per day. Now multiply it 365 times. What do you get?
5475$ of pure loss a year. What would you buy for that amount?
Small numbers make big numbers. Don’t waste money
Everyone who had even once contact with mathematics knows that small numbers make big numbers. Throwing away five bucks once is not a big deal. But throwing five bucks one thousand times could be a problem. Ask yourself: how many times a day you say “screw it, it’s not such a big amount”? I bet you do it quite often, because such things are not a big number in our life. However, those numbers make big debts in the final outcome. That’s why I encourage you to care how much you are spending and on what, instead of throwing money around like a helicopter. As I said before – what would you buy for those five thousand? It’s quite a big amount for doing absolutely nothing.
Don’t lose money without a purpose
Warren Buffet is rich because of stock market but I also think that he is rich because of his attitude. Because he knows the value of money and he doesn’t waste money with hope that it won’t bring him harm. Maybe this is kind of attitude is something you need to have a lot of cash.
Nevertheless, even from the ethical point of view it’s a stupid thing to pay double for something, where poor people somewhere in the world are starving because of poverty.