1. Spend wisely
If you buy things you don't need, you will soon sell things you need. - Warren Buffett
All of us suffer from the urge to splurge and we justify our spending using the pretext of special occasions, peer pressure, lifestyle, family, emotions and even smart decisions. Most marketing companies understand this urge and try to exploit it by making offers that give consumers the false notion of having made the right decision. Unhealthy carbonated drinks are sold with promises of happiness, adventure, youthfulness, etc. Take the example of the current EMI options on expensive smartphones.
When one could do with a Rs 15,000 phone (within budget), the EMI option gives a false sense of smart decision and instead makes you buy a Rs 35,000 phone (overstretched budget). Spending wisely is not being stingy but being smart and aware. Every rupee spent on unnecessary urges contributes to lost wealth.
What you should do: Always ask these questions: Do I really need this? Am I overspending? Can I save some money without compromising on the value I want from a particular product/service? Encourage your family members to follow this path.
Lesson: Rule No. 1 : Never lose money. Rule No.2: Never forget Rule No.1 - Warren Buffett