Be financially free - Spend less than you make

You may have heard this, spend less than you make. But do you face this issue - the more you make the more you spend? I know of many who are facing this issue including myself. When you got a pay raise or got an increase of profit from your business, you tend to spend that extra money.

I was earning $14,000 per year in my first job, and I spent it all with no savings. Then I got a raise 2 years later, earning $21,600 per year.

Yup, I spent it all too, with no savings. I do not know the concept of spend less than you make. I lose control of my spending, until I read Rich Dad Poor Dad, then I got awaken financially.

I know I can be rich if I follow the principles of what Robert Kiyosaki taught about wealth. I begin to practice spend less than you make.

However it's a challenge for most to control their spending even if they got a raise. You can practice this habit which I practice too.

The lesser you think you make, the lesser you will spend

It had so far been very effective for me. When my income goes up, I will still think that my income remains. It's an effective way for you to spend less and invest more.

When you start taking home with less pay check, you will be train to spend at lower level. You will gradually be comfortable with that spending level. You can achieve spend less than you make at your own pace.

Usually when my income comes into my bank account, I will immediately transfer all the extra money to my investment account, leaving the amount that is enough for me. This way, I don’t have a chance to see that extra money. If I don't see it, I don't spend it.

I am able to spend less than I make from the time I practice this method.

With this method, you are actually making your mind to believe that you are actually bringing lesser home. Your mind is a powerful tool. When your mind believes that, you will begin to spend lesser. The extra money then can go into your investment account.

Some may whine, "Come on, and how I can save when I can barely pay my bills?"

If with an income now, you are unable to pay your bills, what will happen if you do not have an income? It can be worse. I not implying you will not have an income in future, I hope that day will never come. But in our current world, things are moving so fast that it's hard to predict anything.

Upper level managers can lose their jobs overnight; businesses can go bust in a day. Isn't it good to know that you are able to pay your bills whether it happens to you or not?

This is only the beginning of getting to financial freedom. Spend lesser, invest more. There are more to the process of getting there. Learn more of being financially free from our newsletter.

You can be rich by being generous
The rich are generous people. How does generosity make them rich? Start giving first. Givers get.

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