If amassing a fortune was easy, everybody would have done it already. One of the challenges associated with building wealth is that people often to spend money they don’t even have. Loans, credit cards, and financing options are available in abundance, and sometimes it’s hard not to want to take advantage of them.
However, this is where many people have to learn to practice restraint. They have to learn to remain conservative, and become better managers of their own financial life.
Don’t spend tomorrow’s resources today.
Here are several things wealthy people have trained themselves to do to become better stewards of their money.
Let’s take a closer look at what it means to practice conservative values.
Much has already been said on the blog about eliminating debt from your life. Believe it or not, it is stifling your creative headspace, it is impeding your ability to focus, and it is holding you back from doing your very best as an individual. Get out of debt, and you will soon realize that this is true.
People didn’t have debt some 60 years ago. They paid for cars and houses with cash. Ownership was the norm rather than the exception.
We live in a debt society, and it’s uncommon to not have debt. Those who want to amass a fortune will find it prudent to position themselves so they are uncommon. Begin to reduce debt from your life immediately.
Pay With Cash
As was already pointed out, roughly 60 years ago, people used to pay for everything with cash. What happened?
Inflation happened. Taxes happened. Loans and credit cards happened. Status happened.
However, even today, it is not impossible to live a more streamlined lifestyle. It is not impossible to cut back on expenses and live more frugally. This is a choice.
It isn’t necessarily an easy choice, because it usually means letting go of some immediate comforts. However, if you continue to develop good financial habits, you will only have to sacrifice for a window of time. Sooner rather than later, you will have so much more than you ever imagined possible.
In order to pay for everything with cash, first you’re going to have to eliminate debt from your life. You’re going to need a regular income that you can depend on to supply your basic needs. If you’re willing to go after it aggressively, you can get to that point quicker than you think.
Live Below Your Means
It has often been said that you should live within your means, but if you really want to get ahead, you should learn to live below your means. You have to learn to spend less than you earn.
People tend to spend more than they earn because they are trying to keep up with their peers. Unfortunately, their peers are usually just as broke as they are.
First, you need to create an income that allows you to cover your expenses. However, you will also need to cut back on unnecessary spending. You will have to make lunches and resist urges to eat out. You will have to put an end to impulse buys.
Again, if you’re willing to live like no one does now, you will be able to live like no one is able to later.