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May 16, 2010


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I like very much this post. It tackled the biblical truth about how to handle your wealth. I will be waiting more posts in the future.

I think you are 100% correct. You need to start with spending less than you earn.

The reason the globe is in the financial predicament we are in is people and nations all spending more than we earn. The first step should be spend less than you earn. If you do not get spending under control, pillars 2 - 7 will not matter.


Great site...'Pay yourself first' is my basis...whether its $10, $100, $1000 income...the first thing I do is put it away...then spend what must be spent...

'The Richest Man in Babylon' has great tenents of gaining wealth...including 'Make of thy house a profitable investment'....I rent out the bedrooms upstairs to decent people...they ahve their own kitchen and bath...we share a commonentrance doorway and I pay the utilites but it works well and is legal...Sam Pittsburgh

Absolutely. I find it hard to believe that someone could disagree with that, in most situations.

Now, if someone is a full-time student, then that is an investment in the future that will more than pay off. The Net Present Value of a high quality education can be positive - just have to wait for the long term cash flows.

But yes, as a rule of thumb, spend less than you earn. That's the foundation to healthy personal finances, and without it not much is possible long-term.

I've found out that the most important pillar is actually "Be able to make a Living Wage". You have to make a living wage before you can "spend less than you earn", unless you don't mind sleeping in a cave (which yes, some people do).

If you don't have any earning power, it's IMPOSSIBLE to spend less than you earn, because no matter what you do or how many jobs you try to take on or get, they pay so poorly that you don't earn enough to pay the most basic of life's necessities (Shelter, Food, Electricity). That's my problem (which I'm working on fixing).


Can't wait to read about all 7 pillars!


I totally agree. Good luck in your search for finding a "livable wage". Afterward, then you can begin to apply the first principle.

like tlltaco said, amen! Any other PF tips are useless if you spend more than you make. create a budget, get a second job, cut expenses, do whatever you have to do so that you can save money each month instead of gaining debt each month.

Preferred Financial Services

Great first pillar! Unless living on less than you make is deeply ingrained into one's psyche, people (or nations) will default to spending more than they make. First things first!

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