3. Understand The Difference Between ‘Want’ And ‘Need’

Usually you don’t figure it out, but there is a difference between things you want and the things you need. The things which you truly need are the basic necessities in modern life: Food, shelter, clothing, education, transportation and communication (like a phone). Other than these, whatever you desire for are your ‘wants’. As a sensible shopper, you must stick to your budget and buy which are necessary. And try to limit your expenditure over buying things you want.

4. Stop Competing With Others And Be Happy With What You Have

If you spend your money in order to compete with other people’s life style, then you can never save money. Don’t be a copy cat, just because your friend has got the latest tech gadget or designer wear doesn’t mean you need them too. You need control your temptation for other peoples belongings, if not you will waste most of your money in extravagance things and later regret about it. So be happy with what you have.

Also Read: Rich And Their Extravagant Spending