The simple trick that worked for me without compromising my lifestyle (for the most part). My philosophy - live below your means. These are some general practice that has helped me and anyone can follow/adapt to fit their needs. I hope I continue to follow these and probably get better at managing overtime
1. Keep savings out of your sight - Luckily, I am landed a good decent paying W2 to secure my goal to get into REI. For the past two years, I saved 100% of my sign-on bonus that I got every month and an additional 10%-15% of my regular compensation. I opened a couple of bank accounts and set up a schedule (automated transfer) to move my savings to another account. I do monitor the account from time to time but I don't actively use it. The other account is all the funds that I have to live, eat, and breathe. I manage all my living and recreational expense through the remaining funds. And few times I was able to save an additional 5%-7% additional from these active checking accounts. If you see more funds available, you will make that unwanted purchase.
2. Buy half of what you can afford - I pick quality over brands. I don't need to wear or possess the most latest fashion. As long as I get the value for the money, I am happy. If I have to overpay I rather do it for my food than other possessions. Good quality does last longer, and expensive doesn't always guarantee good quality. There is no one standard rule but I say spend 50% of what you want or can afford (doesn't fit all the scenarios). I love performance cars (who doesn't). Even though I could afford a nice ride that I have always wanted for all these years, I settled for a Honda. The only thing my Honda doesn't have are those leather seats, ambient lighting, and the couple hundred horses. But, it does put a couple hundred $$ back in the pocket every month. For my clothes, I shop primarily at Outlet stores, Target, and Kohl's. You may not find the latest trends and styles but I am sure you can find good quality products if you look around. Additionally, I do my best to buy things that I know for sure about using. I don't buy extra stuff to fill my house (furniture, electronics, kitchenware, etc.) I am sticking strongly to what I need while staying away from nice to have stuff.
3. Feed your brain - buying books is the best use of Amazon gift cards. More than half of the time we end up buying things that we don't need or we don't use with gift cards. What I am trying to say is to use the free money wisely. Invest in educating yourself to manage your wealth better. Understand why managing your wealth is important and how can you get better with it. Managing wealth doesn't mean savings. Understand the psychology behind doing it and align it with your values and purpose in your life. If you think - it's about putting together an equation that aligns with your long-term goal. Take your time to learn about the subject you are passionate about. One can never be perfect and hence, one should never stop learning. The things that I mentioned above are nothing but shifts in the mindset. How you think is VERY important and it takes a bit of effort to shift your thought process to align with your intentions.
