7) Steer Clear of Depreciating Assets
When you start accumulating money, it is important to be prudent about your non-necessity purchases. Many of the things that people splurge on have values that depreciate over time. For example, upon coming into wealth, people may buy a new expensive car. Unfortunately, things like this start losing value right away. You are much better off investing in things like real estate. Though certain events can cause some changes in building values, they still tend to be more stable. Even things like going on elaborate vacations can be considered depreciable. Though you may make some happy memories, leisure trips will not help your funds grow. As such, before you spend big, sit down, and think about how the purchase will affect your finances. That way, you can figure out how you can make your money work best for you.