No matter how much money you earn in a month, you won’t grow financially if you don’t control how you spend it. To become wealthy, you must not only learn to make money. You must learn to control your expenditure as well. I know people, (and I’m sure you know many too) who have good jobs, take home fat salaries at the end of each month, and yet are not rich. A leaking purse cannot hold much money.
Have a Plan
People who spend anyhow are often those who do not have a plan for their income. They are attracted to the things they wish to have when they see them at the store. This is often true within the first week of receiving their income. And because the money is there, literally, they reach out for their cards or purse or pockets and make a purchase. To avoid such unnecessary spending, you need to draw a plan for the month on how you use of your income. Be sure to set aside part for savings, if you truly want to become wealthy.
Postpone What You Don’t Need
In drawing your expenditure budget, do your best to eliminate the things you don’t need immediately. Those things you are sure you don’t need within the month should be out of the list. Only include items you need; those that are absolutely necessary. Emergencies must be taken care of, but we often lie to ourselves when it comes to what we classify as an emergency. People therefore hide behind ‘emergency’ and convince themselves that their undisciplined spending was a result of emergencies that occurred in the month.
Discipline Yourself and Follow Your Plan
This is the most difficult part. Following your own plan can be a very difficult task for many people. And I have such difficulties as well. However, I realize that the months in which I’m able to follow my expenditure budget are those that I’m able to save more. Some financial advisors and personal finance experts even advise that you set aside your savings even before you start spending. This practice confines you to spend only what is left to be spent, having saved part already.
If you can stick to your plan over a long period, and discipline yourself financially, wealth is one of many goodies that will walk to you steadily.