Being Thrifty is Important... Rambling on Budget!

Well it's an issue these days that most people are overspenders.  Some friend of mine told me how much overspending has hit majority of both Americans and Filipinos alike.  If they can't afford it- they immediately charge it to their credit cards.  They can't wait for the prices to lower down.  If that's not all- both countries are into the system of charging to credit beyond what they can afford.  Then what happens is when financial difficulty comes, the bank gets forced to confiscate their houses leaving them with nothing much later.  What's really crazy is that not only the rich but also down to the poor becomes a victim of the overspending mentality.  It's also very unavoidable to make bad decisions- some people end up committing various mistakes like becoming too generous with people they become victims of swindlers or get cheated of a lack of information to which money is involved.  So that's why being thrifty is a very important virtue!

So here's a few tips on how to be thrifty based on Chinese and Japanese etiquette:

1.) Never buy everything you want immediately, settle first on what you need

Do I need a PC?  Check.  Do I need a new TV?  Nope.  Do I need to buy food?  Check.  In fact, focus on your needs and you'll want less things.  Right now, I want to get a PS3 but I DO NOT NEED IT.  I'll buy it IF I can afford it which right now, I can't because it will fracture my savings with more than just a half of it.  This can be effectively done with a good budget plan.

2.) Avoid the trendy trend buying most people get involved in

Sadly many Americans and Filipinos are stuck with this as they foolishly antagonize even their own friends in the process.  They charge it to the credit card to avoid being caught not having what the other has.  In the 90s, I remembered how MANY video game systems a child would want to own.  I remembered crying over a Super Nintendo which soon phased out because of the coming of the dawn of the Playstation which was a MUCH COOLER SYSTEM despite the load times... heck it's even better than the Nintendo 64.  Then there was Sega Saturn which used a nude woman (with private parts covered by screenshots) to endorse their product.  Then there was... ahhhh... I can't remember them all.  Then I got a Playstation as a gift for Christmas and enjoyed it.  I didn't regret holding to it and later buying the Playstation 2 when it was cheaper.  I want to get a PS3 right now but as said, my budget is too tight and besides I DO NOT NEED IT!  So I stick to what I have right now.  Trends can fade away too easily.

3.) Avoid having too many trips especially within a year

There is NOTHING wrong with having trips but they do cause a LOT of money.  Airplane fees, terminal fees, etc.  As said, before even planning one trip, consider the fact of whether or not you've got lots of money for that time and repeal whatever luxury plans there are if one will take the trip.  I don't frequently go out on trips except if I've got money.  Planning them out is necessary together with a sensible accounting system learned from basic accountancy.

4.) Focus on quality, not quantity

Price does not always dictate the quality.  Some things are way overpriced and the quality is crappier than perceived.  For example, a cup of ordinary coffee sold at PHP 1,000 will not change its taste because it is still ordinary coffee compared to a cup of coffee worth PHP 50 with a really special taste proving that a cheaper good doesn't equal inferior good.  Sometimes food tastes good in restaurants that are cheaper (but not SUPER cheap) than those in the expensive ones.  Take for example between a high class hotel with bland food vs. a native restaurant that sells quality food.  As much as possible, list everything where the price and quality meets or what quality products have lower prices.

5.) Also avoid being too stingy for it is too different from being thrifty

As said, avoid the Mr. Krabs Philosophy because it's plain stupid.  Trying to sell a ruined patty which could have only cost 0.65 cents in American value will mean a huge loss of $40,000 or higher much later.  Not cleaning the restaurant and avoiding sanitation expenses will mean law suits because people will get poisoned.  Having a decent workplace attracts more customers to come in because they can already know that the place is clean.  This is another value thriftiness does not forego but stinginess embraces it without hesitation.

6.) Open a time deposit account as well as retail treasury bonds

It's important to have friends in the banks to guide you to investments.  A time deposit gives bigger yields in the long run than the saving accounts and retail treasury bonds allow you to enjoy the money from interests into your saving accounts if you need more money.  This way, one can have more money in the long run.

I hope I have shared my thoughts.