Updated: Aug 16
1 HABIT ALL SUCCESSFUL PEOPLE HAVE WHEN IT COMES TO MANAGING MONEY
Most financially successful people share the same handful of things in common:
They are disciplined with their money
They know how to stay focused and not let small money mistakes become large obstacles
They read books or blogs about how to better manage their money
They let compounding returns help (investing) not hurt them (high-interest debt)
They work with advisors like Certified Financial Planner professionals to help guide them along the way
But many times, their financial success comes down to one thing:
THEY SPEND LESS THAN THEY MAKE
And here's why:
Spending less than you make frees you up to take advantage of opportunities. Ultimately, it allows you to shift from paying to earning.
When you have extra cash, you can invest the money and start building a more sustainable future, instead of the stress and anxiety that comes from cutting it too tight
YOU CAN MAKE THIS HAPPEN IN TWO WAYS
Spend less. Start tracking and budgeting your spending each month. This will help you find easy ways to cut
Earn more. This isn't as broadly discussed, but many times earning more money may have a bigger impact long-term. Renegotiating your salary, starting a side hustle, or even evaluating new job opportunities are all ways you can bump up income and create more investment opportunities.
As simple as it is, if you can successfully spend less than you make (and make it a habit), you will watch your net worth grow and grow.