Become A Millionaire By Living Within Your Means
We live in a society that everyone wants the good life now. Times are gone where you started with what might not be considered the “best of the best”, but you could afford what you owned and you were not in debt. With credit being handed out so easily, almost anyone can buy what he or she wants now and pay for it later. It has become the “American Way”.
A smart person will realize that to be several steps ahead of everyone else, all you have to do is to live within your means. What is this definition? To live within your means you must be spending less money than you are earning. That is, net earnings after taxes. Most people are not doing this, which causes major debt. The more debt you find yourself in, the less likely you will ever reach your dreams of being a millionaire.
When I was in my early twenties, I owed very little, and I was enjoying life. If I wanted something, I would buy it. That is to a degree. Even though I thought I spent money as I wished, I always had it in me to be a little on the conservative side. By the time I reached my mid twenties, I decided to start doing some serious investing. I had seen a television show on wasting money and it focused on taking inventory of what you have not used within six months to a year. I gathered a pile and calculated, and was amazed at what I was buying and not really using. I had a tendency to be a compulsive spender. So I took the shows advise and would not purchase anything until I walked away from it and thought about it for a day or two. If I then wanted it, I would go back and buy it. This helped me to cut my spending on non-necessary things by two thirds. The money would be invested, and I could start to see an investment portfolio that was growing.
Buying your first car or home can be an extremely stressful time. Years ago, only the wealthy youth would purchase a new car. My first car cost me $1500.00 and I paid cash for it. I’ve only financed one car in my life because there are no tax deductions from doing so. Everyone wants a new home to live in. But if you can buy a home that fits your needs, but may be less expensive, you can save thousands of dollars and be able to invest in your future. The average person lives in their first home less than eight years before moving to something different. Give yourself a goal for something to upgrade to. You will find yourself less stressed out and you will have more money available to work on your goal.
Once you take a hard look at what you earn and what you spend, you will be surprised at how much money you can save buy cutting out the “Wants” versus the “Needs”. Take the extra money and start investing for your goal to be a Millionaire!!!