Change this 1 habit and create wealth this year

 Posted by Clyde Gonsalvez on January 9, 2023

If you want to create wealth this year then stop this one habit.

Stop increasing your spending when your income increases.

The above habit will make you broke!

When people receive a raise or a bonus they automatically go out and buy that expensive item they have always wanted. Whether that’s a new car, a new watch, new clothes, a bigger house. By doing this you will always live paycheck to paycheck.  

Just because you now earn a higher income does not mean you have to increase your expenses. Just because you can now afford to buy a bigger house does not mean you have to buy that house!

To create wealth always look for ways to reduce your expenses. Make sure your income is always greater than your expenses.

When was the last time you did a budget? A budget is a great way to help you reduce your expenses.

A budget can be a daunting process even embarrassing at times because you will finally know where all your money is going. When I talk budgets to clients I get them to do the following:

  1. Make a list of all their expenses. Categorise as many expense items as possible. Be very descriptive.
  2. Go through the list and write down how much you have spent on that item last month. If you don’t know look at your bank statements.
  3. Look at each expense item and determine how you can reduce that expense.
  4. Stick to the new budget

I personally like daily budgets. Where everyday you look at how much you spent and compare it to your monthly budget. I highly recommend!

By sticking to your budget, you will soon notice your bank account increasing. How exciting!  

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