3rd Law of Wealth Creation – Control Your Spending

It seems to be a universal law, we spend what we make, and as your income grows, so do your living expenses.

However, if we stopped confusing necessary expenses with desires then we would probably spend an awful lot less. By spending all your wages to satisfy your desires and cravings, do you satisfy ALL your desires and cravings?

No, of course not, there’s always something you want that you can’t afford, so you spend you wages on lower cost, lower value items and make do, rather than saving and investing so your money grows. We will always have desires, it’s the nature of mankind to want constantly.

Self discipline to deny these wants is required to make your money grow. Study how you live, how you spend, I’m sure there are ways you can reduce your expenditure, habits that cost you that can be reduced or eliminated.

Select the items you must buy, those that are necessary, then select the desires you can gratify while still saving 90% of your income. The remainder of your desires, put them out of your mind and consider them part of the teeming multitude that must go unsatisfied and don’t regret them for an instant.

The 3rd Law of Wealth, budget your expenses so that you have money to pay for necessities, to gratify and fulfill some of your desires, without spending more than 90% of your income.

I appreciate that many of you will say, ‘If you see what I’m making, you’d know I can’t save a penny’. Belive me, I’ve been there, I know what you’re saying and how you’re feeling.

However, if you start saving something, and commit to doing it regularly out of every paycheck, pay yourself out of your wages and put that money somewhere safe and make it untouchable, you’ll be amazed at how fast it will grow. Build your nest egg, this will be the basis for your future wealth.

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