Big investors are not always big spenders. They tend to cultivate more careful and measured spending habits. No one ever got rich by wildly spending money. One of the secrets to remaining wealthy is not to blow your wealth on things that don’t increase your wealth. Some of the wealthiest people in the world are also some of the cheapest cheapskates. But don’t judge them too harshly. There is a method to their madness that often whizzes right over the head of people who have been broke all their lives. It is a lot easier to go from rich to broke than it is from broke to rich. The rich are all too aware of that.

One of the reasons the poor stay poor is in many cases, they cannot differentiate between spending and investing. This is more than mere semantics. The poor work for money. The rich have their money work for them. It is not a magic trick. One of the reasons the rich get richer is because they put their money to work the moment it comes into their possession. Everyone can invest. Here is how to know when you are spending rather than investing:

Nothing You Have Appreciates in Value

It is a well established fact that Macs hold their resale value a lot better than Windows PCs. However, they will almost never increase in value unless they were signed by Steve Jobs. You might consider a computer an investment if used to make money. But typically, computers are not investments. They don’t appreciate in value.

You know you are spending if your home is cluttered with things that depreciate rather than appreciate. Instead of looking to pour thousands into more gadgets you don’t need, why not seek out original art for sale? Not only will you be able to add timeless beauty to your home, you will have an asset that traditionally increases in value over time.

As a collector of art, you might have some pieces that have middling value right now. Perhaps you spent a little at a yard sale and got lucky. Here is where you need to be careful not to think like a spender. If you have something of value right now, hang onto it while it gains real value for later. Try to maintain at least one thing that tends to increase in value.

You Buy Expensive Things on Impulse

If you really want to go broke, continue making expensive purchases on impulse rather than taking the time to do some proper research and soul-searching. Good investments aren’t made lightly or quickly. Bad spending happens in the blink of an eye.

Emotional spending is the death of a good budget. You are cold sober when making your budget. But spending can be like a drunken high. At the moment of decision, you can come up with all kinds of reasons why your budget was overly conservative and why you really can afford that thing you suddenly want so much. Investors keep a level head when forking over large amounts of cash.

You Don’t Know Where All Your Money Is Going

Everyone has had that moment near the end of the month when they could have sworn they had more money in the bank than their balance suggests. This happens to some people every month. They blame the spouse, the bank, and even the dog. They are spenders not investors.

An investor knows where every penny is going at all times. They know, or can quickly determine how every investment is doing, which are performing as expected, and which are underperforming. They are not confused about their money even when an investment fails to pay off. And they never blame their spouse for decisions they made in the heat of the moment.

Which type of person are you? Do you have items that tend to increase or decrease in value? Do you make quick decisions on big-ticket items or take the time to get some perspective? Finally, are you confused about where your money is going or do you have a clear picture of your finances? It is never too late to transform yourself from a spender into an investor. Start taking on that investor mindset today.

We’re all looking for ways to live our values and have our spending align with our priorities. The only question is: how?

It seems that every day something else is vying for our attention. Many families have been delaying expensive purchases because of uncertainty and turbulence. If you’ve been thinking about how to spend according to what matters most, consider 3 key ideas.

There are so many ways to identify your priorities and achieve savings…here are my top 3 favorites.

Eat Less Meat

If you’re looking for a big solution, eat less meat.

It may seem like an unusual place to start. However, if you shift from eating meat, you will save money on your grocery bill. How much is entirely up to you?

Please don’t take my word for it. Instead, run a personal experiment. Make a move in the direction of eating less meat by initiating a Meatless Monday. Use this day to experiment with eating more vegetables, grains, and whole foods. No meat. All-day.

Then, check your grocery bill. Do you notice a difference?

One friend told me she saw an immediate drop in her bill of 30%.

When you’re eating less meat, you’re not just saving money. You’re also supporting the health of your family. You’re introducing vegetables and whole foods that your children and spouse may come to prefer.

Besides, you’re supporting the earth. It takes a lot more acres to feed a cow than it does to grow enough vegetables to feed people.

And that’s not all. You’re also contributing to not killing innocent animals. Many cows are raised and slaughtered in inhumane conditions. By opting for vegetables, you are helping guide the direction towards the compassionate treatment of animals.

So, let’s say you go for a Meatless Monday and see the benefits.

Why stop there? You can easily expand the zone of no or less meat to two, three, or seven days a week. The choice is yours. My bet is you’ll feel lighter, support your family’s health, help the planet, and spend less. That’s a win-in in every direction.

Use Vinegar

I bet you have noticed that household items can be problematic for the environment. As a conscientious person, you may have looked into buying organic products to reduce potential pollutants.

This is a smart move, but it’s very likely expensive. That’s why our moms and grandmothers often turned to a simple substance: vinegar.

Vinegar is a remarkable product. It can be used to replace so many cleaners and household products. I didn’t believe it at first, but it has the strength to remove scum from the bathroom and mold from the hard-to-get places in the shower.

You can even use it to clean the toilet and bathtub. This is an awesome way to create a healthy household and save money on an ongoing basis.

Protect Your Family

No one likes to think about unexpected events. But sometimes, often in the middle of the night, you may find yourself searching for ways to prepare for unexpected events.

I just got off the phone with a friend who was up all night. Here’s what Sara told me, “I couldn’t stop myself. I was turned into some kind of threat channel in my psyche and I kept thinking about what could help me prepare my family should something happen to me.

I was randomly typing in topics like, buy term life online, build a retirement plan, and start an emergency fund. Before I knew it…the sun was coming up and I still hadn’t gotten any sleep.”

If you find yourself worried and concerned about protecting your family, it is entirely understandable. What can you do? Take specific action. Yes, you can buy insurance. Yes, you can start a retirement plan. Yes, you can take steps to save up for a rainy day emergency fund.

When you do take specific actions, you’ll worry less—and most likely you’ll also have higher quality sleep. With more sleep, you’ll be in a better state of body and mind to deal with whatever is up for today.

Sum Up

There are so many ways to align your values and your spending. What are you going to do today?

Over the past year, there has been so much uncertainty that thinking about the future can be anxiety-riddled. From local stay-at-home-orders to disruptions in how we work, shop, and play, the situation seems to always change from one thing to another.

And if you want to end up broke, comfort spending is one of the more convenient ways to do it.

During the pandemic, specific industries like cosmetics and sun care reported a sharp decline in products purchased. Several other consumer goods saw a massive uptick in sales.

The leading cause of these changes has been that more and more people are shopping from home with delivery services.

The ease that shopping from home has can also be an issue for overspending. And as we know, overspending can be one of the simplest ways we go broke and ruin our budget.

Regardless of your needs, shopping smartly and not overpaying for food is crucial in today’s environment of economic uncertainty.

It’s The Little Things That Add Up

To save money on food, you should consider alternatives to processed, high-fat, high-sugar items and think about shopping for food in their natural forms.

Foods in their natural state can be versatile ingredients for many different recipes, and combining other things is a great way to make delicious, healthy meals while saving some money along the way.

When grocery shopping, consider buying for a more plant-based diet versus meats, buying bulk grains like rice instead of packaged meals, and most of all, remember that you can shop cheaply and still eat healthily.

In addition to being expensive, processed and junk foods don’t offer much in the way of nutrition.

They are often loaded with fat, sugar, and salt as well.

It’s Just One Cup Of Coffee

One of the most significant luxury items that we spend money on is coffee. In fact, it’s thought that you could save $1,200 or more a year by making coffee at home and not purchasing it from a local coffee shop.

That little one cup of coffee can cost between $3-4 dollars a day, spread out over 30 days is almost $100 a month. $100 a month times 12-months, and you can see how that adds up.

If saving money on your coffee is one thing you want her thing to consider, make small batches such as a single cup of coffee at a time. No, not a Keurig cup. Those are costly, and they create a ton of debris as well. Instead, consider making a small batch of coffee, such as with a pour over coffee technique.

With this technique, you make one or two cups at a time by filling a filter or french press and pouring hot water over the grounds into one mug, wasting little additional coffee grounds in the process.

Making coffee at home doesn’t mean that you need never buy another cup in a coffee shop again. Just be reasonable and budget for it as you would any other expense. An occasional cup from your favorite spot is fine.

But it needs to fit in as a luxury item or reward for some other task you have to perform first.

There are numerous ways to save money, from making food and coffee at home to cutting back on purchases you don’t need.

Whimsical Purchases

Buying something on a whim can lead to other costly purchases that can disrupt the delicate balancing act you’ve created with your budget, so be sure that the purchase is something you need.

If it’s crucial, shop around and see if you can find a lower price online as well as in person.

One final way to overspend with comfort purchases is by buying too many things for our children.

Look, I get it; it’s easy to want to make your kids happy and comfortable in all that’s taken place over the past year.

But buying every little toy, device, or thing just because they say they’re bored or disinterested doesn’t help them develop coping mechanisms. It reinforces quick fixes for something that may take time to correct.

Spending outside of your budget is one of the easiest ways for you to go broke and is also one of the easiest ways to control unnecessary spending.

Creating a budget is an excellent first step, but what you choose to spend money on is also just as crucial in keeping above water with your finances.