How to Afford Anything (But Not Everything)

• It’s important to prioritize. Half of being able to afford what you want is to spend your money on what you really want.
• As Elizabeth Warren emphasizes in All Your Worth [my review], one of the best ways to be able to afford small expenses is to economize on large expenses. Rockwell says that this means never buying a new car. It also means buying less house than you can afford.
• Learn to practice patience and diligence. “When I buy a used car or camera,” Rockwell writes, “I may spend months looking until the perfect sample appears. When it does, I jump all over it, but if it doesn’t, I don’t worry.”
• Don’t get sucked into new luxuries. Luxuries have a tendency of becoming necessities.
• Don’t worry about what you own. “How rich you are is determined by how much money you have, not by what you own. What you own is how much you’ve given away to others!”
• Don’t be afraid to ask for a deal, says Rockwell. Last spring I shared tips from a reader who uses haggling to save big bucks. Another GRS reader e-mailed me yesterday with a similar story.
• Avoid addiction, including addictions to caffeine, nicotine, and television. “Watching television makes you stupid,” Rockwell says. I wouldn’t go that far, but I do know that since I’ve given it up, I’ve accomplished things I never dreamed possible — such as building this site.
• “If you really want something, buy it, or wait until you can. Don’t buy something that isn’t what you really want.”