By in Personal

Don't Adjust Your Income Adjust Your Spending

The first rule of wealth creation is not to find ways of earning more, but to cut your spending or more specifically change the way you think about how and what you spend you money on.

Now we all know people who earn vast sums of money, but never seem to have a dime, often this is because they spend the money faster than they are making it, as their income goes up so does their spending, often on things they don't actually want or need. This is why it is important to get your mental attitude to money right before you focus on making more of the stuff, otherwise you will just end up in the same place you are know.

This theory often referred to as a poverty conscience has been proven time an time again, by lottery winners, sports stars, pop stars and stars of the silver screen. The money these people earn or receive is vast and comes so fast that they get caught up in the hype and just start spending, and once they start spending they struggle to stop. Inevitably the money dries up, take a sports start for instance, during their playing career they will earn tens or hundreds of thousands of dollars a week, this gives them access to thing most only ever dream of, but a career in sports is often very short and once their playing career is over the money stops but so often the spending continues and bankruptcy follows.

By just taking a little care to spend less than you learn you will naturally create a wealth mindset and the money will stick, don't focus on trying to keep up with all those around you, buy only what you really need and want providing you have the money to do so. This will reduce any money worries and the stress that goes with them, and help you build a sound foundation to move forward in creating long lasting financial freedom and security. Next time you are about to buy your next purchase, stop and ask your self if you really want it or is this purchase just coming from habit, you will be surprised by the answer and once you break the habit of buying things you don't really need your mindset will change as will your financial fortunes.


Image Credit » https://pixabay.com/en/banknote-business-cash-currency-15628/ by PublicDomainPictures

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Comments

Bensen32 wrote on July 6, 2015, 9:28 AM

Very true, people often young people fall into this trap. They often fall into the trap of credit cards too, buying all kinds of useless stuff then find out they have to pay all that money back.

peachpurple wrote on July 6, 2015, 10:00 AM

Yup. Spend less and eat less fast foid should be able to cut cost

DWDavisRSL wrote on July 6, 2015, 11:12 AM

Savings and wise investments of a good portion of your income, as much as you can as often as you can, is the way to go. I waited almost too long to learn that lesson. Thank goodness my missus didn't. Her good planning on both our behalves will pay off in a decade when we're ready for retirement.

WordChazer wrote on July 6, 2015, 6:07 PM

My credit card companies make me laugh. One wrote to me today doubling my credit limit. The other sent me a letter offering zero interest balance transfer. Meantime the and the eBay sales continue quite steadily which allows me to keep the wolf from the door at least.

AliCanary wrote on July 6, 2015, 8:30 PM

This advice has worked well for me over the years. I may not have the latest iPhone, but I have two cars that are paid off and ZERO credit card debt.

allen0187 wrote on July 7, 2015, 12:26 AM

Easier said than done. I've managed to cut down on my spending but sometimes I can't help it! LOL!

That is why I look for alternate sources of income!

CoralLevang wrote on July 7, 2015, 12:27 AM

Great advice that you give. Much of it is common sense spending.

Shellyann36 wrote on July 7, 2015, 3:08 AM

We are one of those "want it now" society. I am a firm believer in saving up the cash to spend on large items. I don't like to buy anything on credit. I try to budget out the monies that I want to use for large items. That way I get what I want without breaking my piggy bank.