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Live Below Your Means, Not Within Your Means

Live Below Your Means, Not Within Your Means

Live below your means, not within your means.

The only way to get ahead financially is to stay behind your own earnings power. This applies whether you make $10,000 per year or $1 million per year. Furthermore, always save a little more each year. The trick is to increase your savings rates every time you get a raise so you’ll never even notice that you had more money to begin with. Avoiding lifestyle creep can be difficult, but that’s how you build wealth.

Don’t think about retirement, but financial independence.

The goal shouldn’t be about making it to a certain age so you can ride off into the sunset, but rather getting to the point where you don’t have to worry about money anymore. A great start is by understanding your priorities and where you spend money each month. You have to understand your spending habits if you ever wish to gain control of your finances. The goal is to spend money on things that are important to you but cut back everywhere else. And if you pay yourself first you don’t have to worry about budgeting for savings, you just spend whatever’s left over.