Here is an outline of the strategy we use to create wealth; this is the first article of many.
Start with the income you have currently. Usually, this is in the form of a paycheck from a job. Some people own their own job. Where your money comes from does not matter. What does matter is how much you receive and how much you spend.
How much you receive - most of you are able to do cover your basic living expenses. We assume you can.
Your Spending - a lot of people have difficulty with this one.
Step one:
Lower your expenses down as far as possible, but keep them realistic. If this means selling your home and living in a studio or one bedroom apartment, so be it. The only exceptions are people who have unique circumstances, such as those with paid off homes or those living on military bases.
Drive only reliable, economical cars, such as Toyota Corollas or Honda Civics. Eat at restaurants only when necessary or on special occasions.
Eat cheap, but do not sacrifice nutrition. Take inexpensive vacations. Wear nice but cheap clothes; do not buy ones that will fall apart quickly.
The choice of whether to get a TV or not is a personal one; some need it to stay sane; for others, it is simply a luxury. If you can do without, do.
Recreation is an important thing which you cannot forget about. If you don't enjoy yourself, you will go crazy. However, this does not mean go on a spending spree. There are many cheap or free things you can do to enjoy your time such as watching TV, hiking, reading, or surfing the Internet.
Basically, spend the least amount of money you can.
It is better to spend a good bit for a product which will last a great deal of time than to spend a little for a product which will break quickly. Think of how much time you will get out of your product per dollar spent.
Consumer Reports, which is both a magazine and a website, is a great place to find reviews on various household items.
Do not starve yourself, lose your friends, or find yourself bored with nothing to do, but do spend as little as you can.
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