Frugality is the Key
Do not be confused by what people say about investment. The only way you can invest is if you save. If you are frugal. Without frugality, there can be no savings. Without savings, there is no capital market, there is no money or capital market to speak of.
How can you be Frugal
l. Spend less than you earn.
2. Avoid going to the mall, do not listen or read much sales pitches for things you do no need.
3. Always find the best value for your purchases. Canvass
4. Always try to pay in cash; do not buy more than cash at hand.
5. Avoid use of credit cards.
6. Use credit card as debit card. It is expensive to buy food on a deferred payment. After you eat an expensive meal in a fine dining, the interest and the penalties will eat your money or what is left of it.
7. If you have money in the bank earning only 0.5% per annum and 3% monthly charge and 4% late payment penalties for a credit card, which is better alternative for you?
Do not be confused by what people say about investment. The only way you can invest is if you save. If you are frugal. Without frugality, there can be no savings. Without savings, there is no capital market, there is no money or capital market to speak of.
How can you be Frugal
l. Spend less than you earn.
2. Avoid going to the mall, do not listen or read much sales pitches for things you do no need.
3. Always find the best value for your purchases. Canvass
4. Always try to pay in cash; do not buy more than cash at hand.
5. Avoid use of credit cards.
6. Use credit card as debit card. It is expensive to buy food on a deferred payment. After you eat an expensive meal in a fine dining, the interest and the penalties will eat your money or what is left of it.
7. If you have money in the bank earning only 0.5% per annum and 3% monthly charge and 4% late payment penalties for a credit card, which is better alternative for you?
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