In today's email:

• 3 Worst Purchases to Make in your 20s.

• Crucial steps to consider before buying something...

• The No-Spend Challenge.

Don't Buy these in your 20s

Over your entire life, you might have bought many things that are of no use to you. Be honest with yourself and think about how many things are there at your house that you bought because your friends had them or you desired to follow the trend when that certain thing is of no use to you. Yes...there will be many.

So the main question is how do you avoid making these expensive, useless purchases? You prioritize. That is correct...you prioritize where and how you will put your income. That is a basic but crucial step in one's financial planning.

Of all the useless things you buy, never in your life buy these three things when you are in your 20s. They will only result in your money being wasted.

1. Jewellery

It's important to know that jewellery loses 30 to 50% of its value as soon as you buy it. It is a different situation if you are purchasing jewellery as a gift for your mother or partner but refrain from doing so for yourself. If you're one of the people who is greatly influenced by modern rappers and the way they dress, you should hold back from spending money on such expensive jewellery. It is advisable to only think about buying them once you have achieved financial independence. Until then, I would strongly suggest you restrain your desires. 

Again, this is just my view; if you enjoy wearing jewellery for yourself, by all means, purchase some.

2. Business and First Class Tickets

Only when you are financially independent should you spend money on business and first-class tickets. The typical price difference between economy and business class tickets is anywhere between $2,000 and $6,000 per ticket. You can save somewhere between $3,000 and $5,000 if you restrain your urges and get an economy ticket. With this money, you can go on a vacation to your favourite place or save, invest, and grow these extra thousands. Additionally, you can spend this extra money on luxuries like phones, laptops, furniture for your home, and other items.

Remember that once you fly in business or first class, you cannot switch to economy class. It is obsessive...

3. Luxury Cars

The only purpose of a car is to get you from one place to the other. A lot of people are fascinated to own and drive luxury cars but you should have the money for buying those exotic cars. Luxury cars are super expensive and they depreciate in value real quick. When you are building your finances in your 20s, imagine the money saved by not buying an expensive car could be used for your travel or some other fun activities. Or, you can just invest it in your startup or into assets to further grow it.

Only when you are financially secure should you consider purchasing an expensive vehicle.

Things to Consider before Purchasing Anything

We usually buy things when we need them. Every time we make a purchase, that thing has a purpose for us.

When people begin to earn money, some acquire the belief that they are able to buy everything. Many begin purchasing items they do not require. Suppose someone has four pairs of shoes: one pair of sports shoes, one pair of formal shoes, and two additional pairs of casual shoes. These are sufficient for a person. It's still alright if you buy two or three additional pairs. Some people, on the other hand, go crazy and buy 7-8 more pairs to wear different shoes every day. That is what we call a reckless buy. These kinds of purchases serve no purpose.

That is why it is important to understand when and why to buy a certain thing. Here are the 7 steps to consider when you buy anything:

1. Is there a purpose for this item?

2. How long will this thing be useful?

3. How much will we actually use it?

4. Will this result in subsequent clutter and chaos?

5. Do I desire it because a friend has it or because he is pushing me to get it?

6. Do I need to buy this right now?

7. Is there a better option than purchasing this?

Only after you ask these 7 questions yourself, consider buying something. This checklist can assist you in making wise financial decisions.

(At the end of the newsletter, I have attached an image that will properly guide you before making a purchase.)

The No-Spend Challenge

If you are someone who easily spends money on stuff not needed, I highly suggest trying the No-Spend Challenge. This will help you save money and keep more of it for yourself!

It is a pretty basic challenge but could be made more fun and challenging. A No-Spend Challenge is where you don't spend money at all for a certain period of time. This will help you save more money and can be used to pay off the debts or just save and invest.

This challenge will help you see how are you spending habits:

• Whether or not you are reckless in spending money

• Do you tend to spend on things that are unnecessary

The duration of this challenge is completely up to you. You can allow yourself to spend on necessities like gas, bills, loans, food, etc.

But, before you take up this challenge, I highly suggest looking at all the reasons and properly understanding your motive behind doing this challenge because being consistent will be tough.

How To Do a No Spend Challenge and Save More Money — inspiredbudget.com

Save more money by doing your own no spend challenge. These are the best ideas that will help you stop wasting money and keep more of it!

As promised, here is the image(decision map) which will guide you properly before making purchases.

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Until Next Time...