Guess what?! You can read all the finance books in the world, and go to all the investing seminars, and buy all the fancy budget apps and tools, and more. But unless you have learned this one thing, it won’t amount to a hill of beans.
You have to stop spending so much.
Far too many of my generation don’t even know what it means to budget.
The majority of guys spend more on their trucks and phones every month than saving for their future family. They don’t have a plan for how to buy a house and provide for a family on their current income since most of it gets spent immediately.
Way too many girls don’t even save anything, because they assume that they don’t need to save for the future. They don’t even consider putting away a portion of their money instead of spending it all. When they want to buy something, they do. When they want to travel somewhere, they go. When they want college or courses or missions trips they sign up whether or not it will drain their bank account (if the money is even there).
Now, obviously, the above statements are general and not true of all young people. But in general, it’s more this way than that young people are frugal, wise, and goal-oriented with their money.
“It’s not your salary that makes you rich. It’s your spending habits.” -Charles A. Jaffe
If you live in American, you have the opportunity to be rich, and you don’t have to be making six figures to do it.
Too many people live with the mentality that they have to make more money in order to save. They think it’s only “rich” people that invest in mutual funds.
People think the more money they make, the more money they will have. It’s simply now true. There are broke people making millions and financially prepared and secure people making a very modest amount. What’s the difference?
It IS NOT about what you make.
It’s about how you spend.
Here are two practical tips to start cleaning up your spending habits TODAY:
- Write down everything you spend. (this will come in handy later when we talk about budgeting.)
- Think about one unnecessary thing you spend money on, and cut it out for at least a week. A few ideas would be music downloads, clothes (hello girls!!!!), coffee, or going out to eat. Don’t worry, you’ll live without it!
Thanks for all the comments and feedback, ya’ll! Know that I read every one and keep filing away your ideas and questions as I continue with this series. Let me know if you have a specific question or money topic you would like to see addressed.