Spend Less than What You Earn - One of the Great Back Door Secrets of the Super Rich!
Want to become one of the super rich? You might be able to make it happen! The secret is spending less than what you earn. A lot less. Hmm, that sounds easy enough of a task but where do you start? One great way is by dividing your monthly expenditures into two parts: fixed and variable costs. Fixed costs are items that remain the same over time like rent, internet, or cable television subscription. Variable costs are things that fluctuate like food, gas and clothing expenses. The key to living a life of wealth is to concentrate on minimizing the variable expenses.
For instance, if you are currently paying $50 per month for your cable television subscription, can you cut that down to $25.00 or less? If so, then you effectively lowered your monthly expenditures by $25.00 leaving more money in your pocket and that is a very good thing! Get rid of any subscriptions that don't serve a purpose in your life.
If you are able to lower your monthly expenditures by $100.00 or more then it will start making a noticeable difference in your bank account and lead to the accumulation of wealth at a faster pace than otherwise imagined possible. Of course, the ultimate goal is to have all your monthly expenses at $1.00 or less but don't overwhelm yourself by trying to make that happen too quickly. Start small and work your way up over time.
Another item that can be easily cut from your monthly expenses is the amount of eating out you do. Eating out on a regular basis can become quite expensive which is why it makes a lot more economic sense to cook for yourself rather than going out to eat every day. There are hardly any fixed costs in eating out so it can become quite expensive if you consume too much of it.
If you want to make a diet change, then the next thing to cut is the amount of junk food you eat. The first and most obvious thing that comes to mind is cutting out soda by switching to water or tea but for some reason, this habit is rather difficult for many people to give up even though it doesn't cost anything other than your time and effort.
For some, drinking soda in large quantities can be very addictive and hard to give up especially when they start feeling ill without their "junk food. Another thing that can easily be cut is the amount of junk food you eat. Processed foods and fast foods tend to be very expensive so if you are trying to reduce your expenses, then this is one of the easiest ways to do so.
There are other ways to cut your expenses, such as carpooling and riding your bicycle instead of driving. Reducing the amount of gas that you burn every year has an amazing effect on your monthly expenses but this doesn't work for everyone.
You don't have to be very old to start cutting down on expenses. In fact, the younger you are the more effective it will be. Kids grow up very quickly and they spend a lot of money without giving it much thought at all! It isn't until their income is stable that they start thinking about saving money.
Adults tend to have more money but they still want to spend more than what they earn which is why they should tap into spending less than what they earn by reducing their expenses. The important thing is that you make a conscious effort while doing so because this is only possible if you live life with intention and focus on your purpose in life.
Take a moment to reflect on your life and where you have been and then think about where you want to go. If you are unhappy with the amount of money that you possess then ask yourself if it is because of a lack of focus? Do you spend what you earn or do you spend more than what you earn? Are your monthly expenses too high?
If so, then there is only one thing to do: reduce your expenses spending less than what you earn. Take a moment right now and write down everything that has anything to do with your expenses. It is important to be as detailed as possible including what you spend on. For example, one person may call their cell phone bill a cell phone bill while others may call the same thing their telephone bill or communications expense.
Another example is that some people will call their food expenses groceries but other people will go as far to list specific items that make up their grocery expenses like milk, eggs, bread and peanut butter. You get the idea! Keep taking time to do this exercise until you can pinpoint your exact monthly expenditures.
Once you have a list of your monthly expenditures it is time for budgeting based on spending less than what you earn. This is the fun part! Take a sheet of paper and write in two columns. In one column, write down your fixed expenses and in the other column, start writing down your variable expenses. Start by listing your fixed costs like rent or mortgage payment, cable television subscription, car payment or lease and telephone bill. The next step is to list variable expenses such as food, clothing and utilities.
When you are done listing all of your monthly expenditures then you can start prioritizing what needs to go where based on what has the biggest impact on cutting out unnecessary spending so that you can spend less than what you earn to accumulate wealth faster than most people ever do!
About Author:
David J. Huffman is a professional blogger and has been building and promoting his online business for the past 4 years. He is also an active member of his local apartment community association board. David is a participating member of the online blog community at Wealthy Affiliate where he shares ideas on how to make money online. Feel free to visit his blog at www.WealthyAffiliateBlogs.com to learn more about Wealthy Affiliate Blogs and other income opportunities he may be offering in the near future!
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Conclusion
Hopefully, you now know all there is to know about building a successful online business. You will need tools, skills, and knowledge - but no matter what success you enjoy in your new career, you will also learn that the most important thing is to have fun!
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