How to spend less money

How much money you are spending is one of the two key variables if you want to have more money (see Manifesto).

You can’t manage, what you don’t measure. The first step to spending less money is:

Know how much and on what you are spending money.

If you do not know what you are spending your money on, start to keep track of it. Write down every expense you make and categorize it. When you have this insight you can start thinking about it and analyze it.

If you are spending money it is not disappearing, but it is changing the owner from you, to another person. You better make sure, the other person is giving you something of your interest in return:

Focus your spendings on things that are important to you.

Spending money and happiness are interconnected to a certain level. This is also why you should not cut your spending too much, but really focus it on what really matters to you.

The smartest way of spending money is spending money on something that is giving you more money back later. If you want to have more money in the future:

Buy things that are raising in value over time.