When you think about getting rich, you would typically think about the various ways to bring the biggest amount of money into your bank account. You can make money by starting a business, investing, holding a high-paying job, inheriting money and winning the lottery (but I wouldn’t rely on the last one). Even though it is very important to have cash flow coming in, Bold TV’s Philip Michael has very sound advice about what mindset you should have when trying to get rich.
Keep money by budgeting your lifestyle
Michael’s father always told him, “You don’t get rich from the big money coming in; you get rich from the small money going out.” This means that it doesn’t matter how much money you have; if you have bad spending habits then that money will go away very quickly. You hear all the time that lottery winners will blow through their winnings, leaving them with nothing in the end. The best thing you can do in that situation is to not change your lifestyle so dramatically. Jay-Z has an amazing quote that can give you a reference on what you can afford or not, “If you can’t buy it twice then you can’t afford it.”
Questions to ask before you buy
It’s nice when you start making more to start buying more luxurious items, but it isn’t a necessity. Ask yourselves these questions: Do you really need an insanely massive mansion, a $250,000 car and a $1,000 suite? First, unless you have 12 kids and need the space, what would you do with such a big house? Second, even if you can afford these items without breaking the bank, your potential financial growth diminishes when you decide to live a more luxurious lifestyle because now you have more expenses. A simple lifestyle is the best way to build wealth that lasts.
For more Philip Michael, check this out.