Live below your
means
People are always
complaining that they "can't get ahead" or "out from under"
financially.
Frankly, the
answer is simple but most find success in this quest
impossible.
You have to hold
back your spending long enough to let your income and wealth exceed your ongoing
obligations.
Our parents used
to practice the method of actually saving the money for major
purchases.
Easy credit and
effective marketing have modern consumers spending money today that they won't
earn for years.
Getting a grip on
your means (income/wealth) is pretty easy...your take-home pay and
savings.
Our regular
financial obligations (house/car payments, utilities, insurance, etc.) aren't
too hard to figure either.
It's those
impetuous, impulsive, got-to-have-it purchases that kill most personal financial
plans.
A cold, hard fact
is that you can't spend what you don't have.
We incur
significant risk buying houses and cars over extened periods of
time.
It's virtually
impossible to avoid that risk, but time can be on your side.
If you stay put in
a house for a long time and drive cars until they die, your income should gain
some ground on that debt.
Hence, living
below your means.