When I suggest that people should spend less than they earn as a first step to being financially successful, I often get comments along the lines of "I make so little, it's IMPOSSIBLE to spend less than I earn." Really? Check out this piece/example from the BBC:
A bank in the Indian city of Calcutta has opened an account for a beggar who deposited 91kg (200lb) of coins in one of the bank's branches.
Laxmi Das says she has been saving the coins since she started begging more than 40 years ago as a child disabled by an attack of polio.
"I saved for the days when I cannot beg," she told the BBC. "I knew one day I would grow old and have diseases, so I was prudent and saved for my pension."
A few more key quotes:
Ms Das says that she has been prudent and saved
"Her efforts show that you can save even if you earn a pittance."
Mr Haldar said Ms Das now has a bank account and those who want to help her can send in account payee cheques in her name to his bank branch.
Ms Das began begging aged 16 and saved coins in iron buckets at her home in a shanty town near the crossing.
Think about this example the next time you want to complain that you can't keep your spending below what you earn!
And if this example isn't enough, here are some more people who saved a good amount despite making very little:
- How to Get Rich on $20k a Year
- Generating a Great Net Worth on a Small Income
- How to Grow Your Net Worth When You Don't Make a Lot of Money
- How You Can Own Two Homes with No Debt on $33,000 a Year
And on the other hand, here are several pieces on what happens if you make a fortune but spend more than what you make.
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