Thursday, April 10, 2008

Rule # 1 Stop Spending Money

"You shall not covet your neighbor's house. You shall not covet your neighbor's wife, or his manservant or maidservant, his ox or donkey, or anything that belongs to your neighbor.“ Exodus 20:17

How much money you earn has no proportion to your ultimate wealth. Your ultimate wealth is determined by how much money you spend.

This is the hardest concept for people to understand as we spend our adult lives trying to earn more money. While this is not necessarily a bad thing most people really don't have much control over how much money they make.

We all have control over how much money we spend. This is where the bulk of your efforts should be spent, controlling expenses not chasing income.

Even when we are successful in capturing more income our expenses seem to "creep" up at a higher rate than our new and improved income.

Think back in your life to how you used to live 10, 20, 30 years ago before you had all that income and ask yourself a few questions.

How did we live on that little income?
How many phones did we have?
How many vehicles did we have?
How many TVs did we have?

Then ask yourself two big questions based on how we live today.

Where does the majority of this big income go today?
Why do we spend money on these "things"?

3 comments:

HealthiaCynthia said...

Very good topic. I will come back to read more later... it seems like we need to spend more time on learning about managing our money in these frightening times!

Cynthia

Moneymonk said...

And that's the truth folks!

Debt Girl said...

well i have stopped spending money on waste products