| Step One on the Road to Riches |
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| Written by Cody Scholberg |
| Tuesday, 18 August 2009 13:28 |
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Here is an outline of the strategy we use to create wealth; this is the first article of many.
Here is an outline of the strategy we use to create wealth; this is the first article of many. The first thing we need to look at is your current income. It does not matter where this income comes from, whether it comes from an employer (for those of you who work for a paycheck) or from your clients (for those of you who own your own job); what does matter is how much of it you spend. Your Income - you need to be able to cover your living expenses. This article assumes that most of you can do this. Your Spending - a lot of people have difficulty with this one. The beginning step: Reduce your expenditures to the lowest realistic amount. Single or married people/people without children, should be living in a one bedroom or studio apartment (unless you are in a situation where your housing is free or exceptionally reduced). Stick to cars like Honda Civics or Toyota Corollas; you want to make sure that you are driving both a reliable and an economic vehicle. Reserve dining at restaurants only for special occasions or when no other option is available. Eat nutritious but cheap food. When you travel, do so cheaply. Be frugal with your choice of clothing; buy inexpensive clothes that will not fall apart. The choice whether to have a television or not is a personal one. Some need it to relax and enjoy their time at home; some do not. Do not forget recreation! You cannot forget to enjoy yourself. Many people have difficulty keeping themselves in check. Try to tell the difference between impulsively spending money and enjoying yourself. There are many things you can do to enjoy yourself that don't cost a lot of money, such as hiking, reading, watching the television, etc. In summary, cut your expenditures by as much as you can. It is better to spend a good bit for a product which will last a great deal of time than to spend a little for a product which will break quickly. Think of how much time you will get out of your product per dollar spent. Consumer Reports, which is both a magazine and a website, is a great place to find reviews on various household items. Do not starve yourself, lose your friends, or find yourself bored with nothing to do, but do spend as little as you can. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Cody Scholberg is a writer for Rapidly Make Money, your source of information on getting rich. |