Transcript of "10 Frugal Habits - Neither Rich Dad Nor Poor Dad, But Rather Be Frugal Dad"
10<br />Frugal Habits<br />Neither be Rich Dad nor Poor Dad, but rather be Frugal Dad<br />
We don’t like the rich dad, who have the poor mind<br />The persons, who have the rich mind, in fact do work, and they work quite hard. They work to learn things, and the things they learn can easily be applied to make money over and over again.Good ideas are always more valuable than good labor, because you can keep mining good ideas, while good labor is spent the second you do the work. They don’t think only about money.<br />
We would like the poor to have the ‘rich’ mind<br />Pay off your debts and start investing as soon as you can into things that can generate revenue. This lesson was short and sweet. However, we cannot live happily if we have to worry about the risks of investment all the time. If you are poor, you just start working hard, and don’t blame yourselves. You have to learn how to live frugally.<br />
The “rich mind” frugal dad is actually frugal and humble<br />Too many people equate rich with material things, so I enjoy it when it is shown that being rich often has very little connection to material possessions. Being rich means never having to worry about paying your bills – it doesn’t mean driving a Ferrari!!! Moreover, the ‘rich mind’ people never insult and demean the poor as stupid and as “hamsters.”<br />
The “rich mind” Frugal dad know that money is POWER because when they have money, they have OPTIONS, but they don’t overlook the value of people. The poor may have few choices, but they always have many other choices that make them live happily. Stop struggling, join us and start living frugally, getting rich, and being free! Here are 10 habits that we must know in order to meet these objectives :<br />
Habit # 1: Be proactive<br />Being proactive means understanding that you are in control of the direction your life takes and in control of your day to day interactions. However what most people forget is that between the stimulus and your response is your freedom to choose your response and make a decisions on the choices that you have.<br />
Habit # 2: Define your goal<br />There are many ways to live a frugal lifestyle and you need to decide on how frugal you want to be. Do you want to be debt free, do you want to build a savings account balance of a certain value or do you want to be able to live on one income in a two income household? Decide how you’re going to get thereand take actions!!!<br />
Habit # 3: Reduce and resize your needs and wants<br />Recognize the effects of your finances. It is easy to spend more than your budgeted amount each month. However if you recognize that you don’t have to take on everything and that it is all right to say no then you will find you are more in control of your spending and your budget. You have to grow this habit faster, because we always use it every time we have to spend money.<br />
Habit # 4 : Know the difference between needs and wants.<br />This is one of the most important aspects of living frugally. Were we buying things we didn’t need? Of course we were! We also discovered that some of our “needs” weren’t really needs at all. One way we learned to distinguish between needs and wants was to have a “waiting period.” If it turns out that we can get by easily without the item, we don’t buy it.<br />
Habit # 5 : Pay for wants with money you already have in hand.<br />Part of our journey to get started living frugally was to institute a rule that all wants had to be paid for with ready cash. If you can count on regular income, and if you have enough extra after your needs, you can give yourself an allowance. <br />
This helps us carefully consider our purchases, so that we only get what we really like, rather than coming home with a bunch of “stuff” that does little more than clutter the house.<br />
Habit # 6: Use a list<br />Every week before we do the shopping, we must go through the house and make a list of things that we need. When we go to the store, we buy only what is on the list. If we have some “want money” available, we can use that for things not on the list. Shopping with a list can help you cut down on impulse buys.<br />
Habit # 7: Replace more expensive habits with less expensive habits<br />Think of the expensive things that you do, and replace them with less expensive options. Instead of eating out, plan a special dinner that you make at home. There are many less expensive activities that have the bonus of creating quality time with the family. Walks, bike rides, camping, trips to the park, sledding and other activities are inexpensive and promote family togetherness. <br />
Habit # 8: Understand the difference between possessions and net worth. <br />You have to achieve true wealth rather than just a life full of stuff. While your friends’ house is bigger, you need to consider how much debt they are hiding behind those possessions. True wealth is not measured in possessions but in assets and when the value of your assets is greater than the amount you owe in mortgages, and credit card debts then you have a strong net worth and are truly wealthy.<br />
Habit # 9: Understand the goals and needs of others. <br />While it is important to explain your desire to live more frugal lifestyle, it is also important that you understand the goals and needs of your family so that you can find a way to be more frugal without them having to give up all of the things which are most important to them and you can’t know what those things are unless you listen. Always surround yourself with other frugal people.<br />
Habit # 10: Free yourself with personal development<br />By eating better you will feel better. Exercising and expanding your mind through learning, reading, writing and teaching. Spending time close to nature to expand your spiritual self through meditation, music, art or prayer. Frugality does not also mean having to give up all the luxuries and things which make you happy. Frugality is something you want to develop and maintain for the long-term. <br />
Frugal living is a lifestyle<br />Frugal living is a lifestyle. It can be hard to get started, but if you take the time to plan your moves and take a hard look at your needs and wants, you can change your habits so that you are living in a way that not only saves you money, but also provides you life satisfaction as a happy family.<br />
Thank You Very Much<br />Sompong Yusoontorn<br />
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