Spending Less than Your Earn Can Make You Rich

One year ago today I posted this quote from author Ric Edelman:

“Spend less than you earn. Successful financial planning really stems from that simple statement. If you retain a portion of your current income, you’ll soon ask yourself a question: what should you do with that money? And that question is the beginning of wealth creation. It is essential that you do not spend 100% (or more) of your current income on current expenses. One day, expenses – housing, education, medical, retirement – will exceed your affordability if you are relying solely on current income. That’s why you’ll be glad (and relieved) that you’ve got past income to rely on.  Spend less than you earn. That’s how rich people got rich.”

Good stuff, huh? I wish I had written it myself.

Then, I included people's comments to this. If you want to see what Free Money Finance readers had to say in response, see Comments: Spend Less than Your Earn.

BTW, if you want to read more about how spending less than you earn can make you rich, see How You Can Become Wealthy.

Comments

[BC3]

This is definitely the one of the most important techniques to employee for getting out of debt. Without this technique, debt management becomes impossible. Even though it is obvious, for many, it is like giving up a body part to accomplish. This spending behavior is essential for sound debt reduction and elimination. I practice it myself and have for years. This is how funds accrue for debt reduction. Excellent advice.