THE JOURNEY OF A THOUSAND MILES BEGINS WITH A SINGLE STEP.
-LAO TZU
Earn More
A bigger income will get you to your financial goals faster. You can only cut so much from your budget before you hit a wall. Grow your income providing increased value to the market.
Spend Smart
You need to spend to live. The key is in spending the least necessary to get what you want. Price compare for regular expenses (like insurance and subscriptions) but limit the time spent searching for deals. Time is your number one advantage. Use it to economize then focus on growing your income. Recognize the difference between NEEDS and WANTS.
Invest the Difference
When you spend less than you earn, invest the difference. This is your savings rate. If you spend 20% less than you earn and you invest that money, your SAVINGS RATE is 20%. Increase your savings rate (the distance between spending and earning), increase your investment in assets and you will accelerate your journey to financial freedom.
Build Skill
Avoid Consumer Debt
Consumer Debt is credit card debt, student loan debt without a defined career path, car loan debt, personal loans, etc. Unlike a mortgage (loan for a house) or a business loan, consumer debt buys depreciating assets or are used for consumables and expenses. It is not productive debt (that creates value). It shackles your financial speed by paying for yesterday’s expenses instead of tomorrow’s growth.