Here is an outline of the strategy we use to create wealth; this is the first article of many.
Begin with your current income. For some, this comes from a job working for an employer; for others, this comes from a job they own, as in the case of private practice doctors, attorneys, etc. The source of your income isn’t what matters. How much you get and how much you spend does, however.
You need to next make sure that you are covering your living expenses. We assume that all of you who read this can at least do that much.
Your Spending - a lot of people have difficulty with this one.
Step one:
You need to spend as little as is realistic. Those with no children should live in a small place, such as a studio or one bedroom apartment (except those with unique situations, such as military housing or those who have paid off homes).
Drive only reliable, economical cars, such as Toyota Corollas or Honda Civics. Eat at restaurants only when necessary or on special occasions.
Eat nutritious but cheap food. When you travel, do so cheaply. Be frugal with your choice of clothing; buy inexpensive clothes that will not fall apart.
The choice of whether to get a TV or not is a personal one; some need it to stay sane; for others, it is simply a luxury. If you can do without, do.
Do not forget recreation! You cannot forget to enjoy yourself. Many people have difficulty keeping themselves in check. Try to tell the difference between impulsively spending money and enjoying yourself. There are many things you can do to enjoy yourself that don’t cost a lot of money, such as hiking, reading, watching the television, etc.
In summary, cut your expenditures by as much as you can.
It is better to spend a good bit for a product which will last a great deal of time than to spend a little for a product which will break quickly. Think of how much time you will get out of your product per dollar spent.
For great product reviews, read Consumer Reports.
In a nutshell, spend the least amount you can, but do not starve, let your social life die, or sit around bored. Instead, cut your costs, but stay realistic.
Tags: b, business, business;finance, e, entrepreneurs, entrepreneurship, f, Finance, financial information, get rich, getting rich, I, investment, n, p, personal finance, r, real estate, real;estate, w, wealth creation