Its not what you make, its what you spend . Your personal financial success - and wealth accumulation - has more to do with how you spend your money than how much you earn . Of course, you're more likely to achieve wealth if you earn $100,000 a year than if you earn $25,000. At the end of the day success depends on how much of your money you keep, how much you keep depends on how much you decide you need, how you prioritize these needs, and how you prioritize what you do.


SPENDING IS ABOUT VALUE; Smart consumers know that focusing on value and quality is more important than worrying about the cost . Long term thinking is important, you need to be aware that today's bargain could lead to more expenses in the near future.

DON'T SPEND, FEEL BETTER; Restrain in spending should make you feel good about yourself . So- called " retail therapy " wont make your problem go away . Only you and your self control can make a difference in your financial and emotional well-being .

SHOW WISDOM, NOT WEALTH; If you want to show off, show off your wisdom, not your wealth ( Remember those old Honda commercials?). Millionaires don't need to prove they are rich - and they got to where they are through sound financial decisions , not showing off by throwing money away on expensive items.

DON'T RESPOND TO ADVERTISING ; Advertising is designed to get you to spend money , and it's your job to be aware of that and not fall prey to its messages. If you're already in the market for a car by all means , pay attention to ads and look for a good deal . But if a car is not your first priority there's no reason to visit the dealership , no matter how attractive that car looked or how great the deal sounded .

WHERE TO SHOP; Part of developing a buying process is to figure out the best places to make particular purchases. Don't just head to the nearest mall any time you need something. Instead, consider where you could get the same item ( or one of equal quality and value ) at a lower price. One such place is a ware house club such as Costco or Sam's club ) where you can save money by buying in bulk . But approach warehouse clubs with extreme financial discipline . Make sure you buy only what you need. If you are buying perishable items, make sure that you will use them before the expiration date. Otherwise consider finding friends or family members to buy items with you and then split them up. Another option is to make your purchases online . If you get a better discount even after you add on the shipping cost, go ahead and place your order . However, it's no longer wise to assume that products sold online are cheapest- it depends on the situation and supplier. In fact , smart shoppers often use the 'bricks and clicks ' model - they research the product on the Internet and then head to the store to purchase what they've chosen . This model works particularly well when you are purchasing items that would be difficult to return on your own . Also consider buying used. Internet auction sites notably eBay have created a marketplace for almost any product you can imagine . And don't forget local consignment shops . They are still around to offer some good old fashioned bargains ...

Most of your expenses are a normal part of daily living and cannot be avoide . The point is to do a good job managing your expenses, which requires the following essential tips :

1.) Planning your expenses - Plan your budget, and make sure your expenses don't break your budget limits.

2.) Develop a buying process - Figure out the best way of making purchasing decisions that help you acquire the most value for the least cost.

3.) Learning what you can do without - Also figure out what expenses are unnecessary , and avoid spending money on things you don't really need .