When replacing something expensive you own, don't think about how much it costs. Instead think whether you would keep the item you already own if someone paid you the amount of the new item.

Take a new car for example. If you have a perfectly fine car paid off and want to finance a new car, don't think "the new car will cost $400 a month and I can afford that." Instead Think "If someone paid me $400 a month to keep my current car instead of getting a new one, would I do it?"

This goes for many decisions in life. I live downtown and own a car. My building offers covered garage parking for $200 a month yet I walk 5 blocks in the cold to free street parking. I justify it by saying to myself "If someone paid me $200 a month to walking 5 block and park my car on the street vs parking in our garage would I do it?"

If you do this you can save lots of money for more important things.

Submitted December 20, 2017 at 03:23PM by HoosierProud http://ift.tt/2BPmaAa