Get Skills Academy

5 Things Intelligent People Don’t Do With Money

There are certain skills that we should all have to manage money smartly. And often, those skills do not come to us naturally. The good news is that these skills can be learned. Here are some of the skills and habits we should be aware of to build wealth and avoid mistakes. 

1.Follow the Masses 

One of the best skills you can have is learning to think for yourself and not be influenced by other people’s opinions. Just because everyone is buying trendy items such as clothing, accessories, or other items does not mean that we should blindly follow the masses. Think about the purpose of the purchase. Do you need this item? How would you feel if it went out of style? Could you find another purpose for it? Or could you sell or refurbish it into something else that is useful? If the answer is yes, then go ahead with your purchase, and If the answer is no, proceed with caution. A lot of impulse purchases are to be regretted afterward. 

2.Buy It On An Impulse

You should never buy anything on impulse. Always wait at least 24-48 hours. If you still like the item enough, you can purchase it. Frequently, we get excited about something new and shiny, thinking we “need it. However, typically the hype will go away after a while. 

3.Not Negotiating The Price

Someone with money-smarts will compare options to find the best deal – and if they don’t see a better deal, rest assured they will negotiate one. Paying full price just screams “dumb money.”

You should always be shopping for the best deals. As a rule of thumb, you should be comparing at least three prices or offers before deciding. Do not accept the first offer. Always negotiate. As the saying goes, “ If you ask, you shall receive,” and what’s the worst-case scenario of asking? It is that you get a “NO” answer. Remember, you did not gain anything, but you did not lose anything. Paying full price is for dumb people. Intelligent people always negotiate. 

4.Compromise On Quality

What is more intelligent to buy three shirts made of cheaper material or one shirt for the same price with better quality? The answer is better quality. DO NOT COMPROMISE ON QUALITY. Always buy the best quality item you can afford and be sure to take good care of it. If you do the math, you will see that the math makes a lot of sense. Let’s assume I purchased a jacket for $500 made of wool and has a classy style. As long as you take good care of it, such as hanging it on a proper hanger, drycleaning it when needed, etc., the jacket can last a long time.

Even as long as ten years. Now let’s assume I purchase a coat with less quality material. This jacket cost me only $100. So, of course, our first reaction would be to pay less. Unfortunately, the less quality material will wear out sooner. As a result, I may need to purchase a new jacket every year. So if we do the math, in the next 10 years, I will need to spend $1,000 ( $100 x 10 years). So as you can see, in the long run, I save money by purchasing items of a better quality that will last longer, rather than cheaper items with less quality that I need to replace often. 

5.Expecting Someone Else To Take Care Of You. 

The most crucial point of this article is to learn the skills of taking care of yourself and loving yourself. It is especially true for women. Girls are raised to be “good” and behave “nicely” at a young age. In some cultures, they even are thought to emphasize finding a “proper husband.”  Suppose, however, you put the same effort and emphasis on educating yourself and learning the necessary skills to be self-sufficient and independent. In that case, you do not need to rely on anyone. So your relationships are formed on equal standing, based on mutual respect. 

So, the decisions we make and the action we take have consequences. It is up to us to decide to be smart with our money. I hope that this article will be a guide to help you in your decision-making process. 

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