I believe the biggest reason why most people can’t get rich has got something to do with how they spend their money. Media everywhere promoting easy credit and materialistic lifestyles are causing many to develop bad spending habits. With so many people spending much more than they can afford, would it even come as a surprise that they need to extend retirement due to insufficient savings? What’s more, there are enough people who are just one pay-check away from bankruptcy!
For a number of years, credit cards in circulation increased steadily, as did the average household credit card debt. Credit card rollover balance, which is the balance subjected to interest charges because it is not settled by due date, also spiraled upwards. Such trends reflect the popularity of easy credit by flashing plastic without paying the debt in full every month. If people continue to spend everything they earn, or worst, spend $1.50 using credit for every $1.00 they earned, how can they ever be rich?
This then, is how you should live if you want to be wealthy…
If you plan to bring your family to Paris for holiday, bring them to Penang instead. Choose a Rado watch when you have the money for a Rolex. Wear a G2000 shirt when you can easily afford a Gucci. See what I’m trying to drive at? Yes, you need to live well below your means!
That being said, I’m not against anyone enjoying some luxuries in life within your means. Life is not all work and no play. You also need to take some time off regularly to rejuvenate yourself. Treat yourself to a good meal, buy yourself that expensive gift you’ve been eyeing for some time, or go on a short holiday. Again I emphasize, indulge in luxuries when it is well within your means. Don't bust your budget to own luxurious stuff. Drive a BMW only if you have sufficient cash to buy a Rolls-Royce! Today, I drive a Mercedes-Benz even when I can buy a Bentley because I live by the maxim of spending way below what I can actually afford. Don’t fall into the debt trap just to keep up with the Joneses because in reality, the Joneses are broke!
If you aspire to be wealthy, live frugally now so that you can save more money for investment later. I guarantee you’ll be a much happier person when you’re not drowning in debt. Financial success rewards those who take positive action to improve their finances.
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