There are only two ways to become really rich: Either earn a lot, or spend a little.
The article was written by Nicolas Cole, the writer in the top 3x on Quora and also the founder of Digital Press.
I’m 27 years old, and one particular habit that I’ve noticed in most of society (especially those starting in their 20s) is the habit of doing a lot to spend a lot.
As my father also told me: “Expenditure increases to meet income level”.
If you are ambitious, you will find many ways to make money. (Illustration).
Here is a typical scenario of recent graduates who are in their 20s:
This is an example that has been intentionally shortened and is fairly accurate. According to statistics, the average savings of households still of working age is about 95,000 USD. That’s their entire life savings.
But in reality, this is not a completely accurate estimate, because if you look at the data for the middle class (the largest class), most families have no savings, if at all. about ,000.
We work harder to earn more – and ultimately spend more.
So how do you maintain or even increase your wealth from young to old? That is to do more, and spend less.
A long time ago I read a story about a banker – explaining how he lived on a salary of 0,000 a year. He has a big house, two sports cars, quarterly trips around the world. Looks like he had a dream life.
But in fact, he also admits: “ But if I lose my job, I lose everything.” He earns 0,000 a year, and he also spends nearly 0,000 a year.
You can make money easily, but sometimes you don’t know how to save.
By definition, he was clearly not rich, but he was quite poor – he had no savings at all.
The older I get, the more I realize that everyone’s definition of “wealth” is wrong. Making money is actually very easy. Once you know how value is exchanged, then you will find that making money is not a difficult challenge.
The challenge here is that you have to earn more than you use, and have to keep living that way. Continue to practice money management habits. Continue to use money to invest. Continue to live as if your income status hasn’t changed – except for how much you can save.
But in reality, most people fail with this.
You shouldn’t ask questions like, “How do I become rich?” , but ask: “How can I spend less, so that I can save more?”
Many people can solve the first problem – making money , but not the second problem – saving .
So first of all, I encourage you to prioritize working on habits. If you are ambitious, you will find many ways to make money. But when you don’t pay attention to your goals and are satisfied with what you have, you will not be able to get rich anymore.
Another quote my father also said: “It’s not how much money you make, but how much you can save.”