The Roadmap to Riches: Step 1
Here is an outline of the strategy we use to create wealth; this is the first article of many.
Start with the income you have currently. Usually, this is in the form of a paycheck from a job. Some people own their own job. Where your money comes from does not matter. What does matter is how much you receive and how much you spend.
How much you receive – most of you are able to do cover your basic living expenses. We assume you can.
Expenditures – this is a common area of difficult
First:
You need to spend as little as is realistic. Those with no children should live in a small place, such as a studio or one bedroom apartment (except those with unique situations, such as military housing or those who have paid off homes).
Drive only reliable, economical cars, such as Toyota Corollas or Honda Civics. Eat at restaurants only when necessary or on special occasions.
Eat cheap, but do not sacrifice nutrition. Take inexpensive vacations. Wear nice but cheap clothes; do not buy ones that will fall apart quickly.
The choice of whether to get a TV or not is a personal one; some need it to stay sane; for others, it is simply a luxury. If you can do without, do.
Recreation is an important thing which you cannot forget about. If you don’t enjoy yourself, you will go crazy. However, this does not mean go on a spending spree. There are many cheap or free things you can do to enjoy your time such as watching TV, hiking, reading, or surfing the Internet.
In a nutshell, spend as little 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.
For excellent reviews on consumer products, check out Consumer Reports magazine.
In a nutshell, spend the least amount you can, but do not starve, let your social life die, or sit around bored. Instead, cut your costs, but stay realistic.