By Mark Wiseman
There was a study done of the 600 wealthiest people in America. They found that the most important thing people did, which contributed to their wealth, was learning how to “live below your means.” Simply put, they did not take on unneccessary expenses, they did not take out loans for cars or school, and they saved a portion of their money. Over a long period of time (20 – 40 years), this savings, or “nest-egg,” grew to become rather large.
Remember the story of, “The Tortoise and The Hare?” This is actually a proverb about how to become wealthy: The tortoise wins the race! You don’t become exceedingly wealthy overnight. It is a long process of slow, careful, steady savings.
Of course, there are many other steps – but this is the most important, foundational principle that all other wealth is built upon. This is the FIRST and most important step in the process. So, spend a few years learning how to discipline yourself to save money. The concept of SACRIFICE plays very large here: you must give up some of the present luxuries and wants in your life, and put them off for a later reward.
I know— it’s boring and not all that exciting to hear this— but, it is a simple truth. And, those who learn and follow this will reap larger rewards after a long period of time. And, the earlier in life you start forming these habits, the greater your wealth will ultimately become.