I’ve always been good with money. Particularly, I’ve always been good at saving money.
I honestly don’t make as much as people think I do, but I spend it well. I buy quality, and I take care of what I own. My public face is a cheap-skate. Privately, I’m rich. I can spend $40 on books without a second thought. But $40 out on the town? You’ll be lucky if I spend that.
All the little ‘pleasures’ others enjoy, I don’t. But I’m not sorry for it and I don’t miss it. Here’s a grim truth for you: saving money won’t make you rich and neither will investing your paltry amount into the stock market. This was a lesson hard-learned and one that most people will never learn.
The way to get rich is to GENERATE massive amounts of income. Plain and simple. You do this by providing value to the world. You can solve big problems or serve millions of people. But first you must become valuable yourself.
Before you can do that there are a couple principles you must know if you are ever to be successful. Start with “The Richest Man in Babylon”. It’ll take $2 and probably 30 minutes of your time. If you can’t afford to invest that much in yourself then you have no business on this website.
I took the ‘Six Laws of Wealth’ and posted them on my wall. My bank account thanks me for it every single day.
Here is another golden nugget I stumbled across on the Fastlane forum:
“Spend money in a way that will cause it to generate more instead of being consumed.”
This has revolutionized my spending habits. I rarely made frivolous buys, but now I know what to buy.
Hosting for this website, Ads, Themes – even books are sound investments.
What things consume money?
Things that depreciate quickly.
- New Cars
- Restaurant Food
- Movie Tickets
- Cab Rides
All these things take your money and are soon gone themselves. Your new car depreciates by 11% as soon as you drive it off the lot. When you buy used, someone else has eaten the depreciation for you.
Stop burning your money and give it a fighting chance.
Ten dollars can get me a weak mixed drink or a month of web hosting. Which one do you think has the chance of generating more?
When my bank account hit an all-time low of $2.57 I was completely broke. I had no food in the fridge. My car was in disrepair. It was ok though. I had just moved across the country and hadn’t been paid yet. I expected to get somewhere in the realm of $200.
I got a check for $37.
I still deposited $3.70 into my savings.
I could have easily said
“I don’t have the money to spare.”
“What difference is $3.70 going to make?”
But I didn’t.
Recently, when I got a check for $1400, $400 went into savings. Easy as pie.
When I get a check for $100,000 dollars, guess how much is going into savings. At least $10,000
It’s not about the amount of money. It’s about the principle.
Just like you cannot out-train a poor diet, you cannot out-make poor financial habits.
If you have bad financial habits, no matter how much you make – you’ll always be poor.
With good financial habits, it is impossible to not become rich.