Important ideas of how to spend your money wisely:
Do not buy/rent more house than you need, so you won’t be ‘house poor’ and unable to afford other activities.
Do not emergency shop. Buying at the last minute to meet a deadline is stressful and often overly expensive.
Learn how to splurge properly, try to get good value and not just the latest expensive trend.
Compare cost vs. value. An expensive item that is only worn once may not be as good a purchase as an expensive item that can be worn over and over again.
Take the ‘high-low’ approach, meaning intersperse an inexpensive fun item with an expensive staple to vary the look.
Keep your ‘sin’ spending in check, that is keep the amount of money and volume of alcohol, cigarettes, etc low. For example, 21% of the rich smoke regularly compared to 47% of the poor.
Read more…http://money.cnn.com/2014/11/11/luxury/spending-habits-rich/index