You’re obviously very frugal but your savings are at rock bottom? Former banker reveals 3 things all rich people have in common

Many people usually work hard to save money, buy things at bargain prices, shop at special prices and make good use of points to give back, but at the end of the month they find that their savings have not increased.Japan Ms Chai, a financial writer and former banker, pointed out that the problem may not be spending too much, but not thinking clearly about where the money should be spent. People who really understand financial management aren’t necessarily the most economical people, but they are clear about their money uses and priorities, and know how to spend money on the things that really matter. He summarized the following three general points.

People who know how to use money usually have a clear idea of ​​the purpose of each expenditure. When Ms. Chai worked in a bank, when receiving financial advice from clients, she would often ask: “When and where is this money expected to be used?” Because only by setting the objective we can plan ahead as to how much money will have to be prepared and when it will be used.

For example, the methods of managing and preparing funds to be used over the next few years are naturally different from those that will be needed in 10 or 20 years. Conversely, if you don’t know where you want to spend your money, you’ll easily be swayed by other people’s recommendations or fads, and buy things that sound nice but aren’t necessarily needed.

So, before making a purchase or spending, you might also ask yourself: “What is this money being spent for?” Establishing the objective first will make it easier to decide whether it is worth the expense or not and will reduce unnecessary expenses.

In addition to knowing what you want to buy, you also need to know what things aren’t worth the money. Only by clarifying what you and your family value and eliminating low-priority items can you reserve resources for truly important needs.