This is the first article of our road map to riches; it is a basic outline leading from poverty to riches.
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.
Your Income – you need to be able to cover your living expenses. This article assumes that most of you can do this.
Your Spending – a lot of people have difficulty with this one.
The beginning step:
Reduce your expenditures to the lowest realistic amount. Single or married people/people without children, should be living in a one bedroom or studio apartment (unless you are in a situation where your housing is free or exceptionally reduced).
Honda Civics and Toyota Corollas are the type of cars that should appeal to you; you only want to drive safe, cheap, and economical vehicles, unless your job requires otherwise. EAt out only on special occasions or in emergencies.
Eat nutritious but cheap food. When you travel, do so cheaply. Be frugal with your choice of clothing; buy inexpensive clothes that will not fall apart.
Having a television is a personal choice; some need it for enjoyment, but others can do without it.
Do not forget recreation! You cannot forget to enjoy yourself. Many people have difficulty keeping themselves in check. Try to tell the difference between impulsively spending money and enjoying yourself. There are many things you can do to enjoy yourself that don’t cost a lot of money, such as hiking, reading, watching the television, etc.
In summary, cut your expenditures by as much as you can.
Buying the cheapest thing is not always the most economical thing. Instead of paying a little for a product that lasts no time at all, pay a bit more for a product which will last you a very long time.
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.