In my last post, I said I would give some tips on how one can build wealth with his or her income. It is important to remind people that building wealth does not depend on how much a person earns, but on one's ability to follow some basic principles, which by the way, are common sense.
The first principle is to spend less than you make, period! It is impossible for you to be wealthy by spending more than you make. This is a very simple concept, but many people do not obey it. When you use you buy things on credit, you are spending money you do not have, in addition to paying others interest for borrowing their money. Do you know that when you borrow money, the lender is getting richer while you are getting poorer?
You can do a research about the millionaires to see how they spend money. None of them buys things on credit. They only things they can afford to pay cash for. So, if you want to be wealthy, forget about buying things on credit. In my next posts, I will give more tips on this issue.
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