There is endless advice, content and theories out there about finances, and sometimes it can all be a bit overwhelming. We can get information overload, then disheartened that we don’t know what we are doing or where to start, so end up not doing anything.
But I think sometimes less is more. So I thought today I would give you just one simple piece of advice that will mean you never have financial worries again.
So what is this brilliant piece of concise wisdom I hear you ask?
Well, it is this: Make sure you spend less than you earn.
Simple I know, and maybe slightly under whelming, but crucial to financial success and very easy to remember!
As discussed in budgeting can be fun! there are certain bills and expenses we have to pay each month such as rent, fuel and food. But once these are accounted for, the rest of your income is discretionary spending. These are things that aren’t essential so we don’t have to buy but often choose to. Examples may be going out for dinner, buying numerous home furnishings or the latest must have gadget. It is this category we need to ensure that spending is below our income. This may mean not going on holiday, not going out to eat as much or cutting back on the Dunkin donuts. As long as we follow this one golden rule, we will gradually month by month and year by year become increasingly financially free.
The income that is not being spent on gadgets and donuts can then be saved for the emergency fund and after that saved and invested for future financial independence.
But it all starts with spending less than you earn. If you don’t know where else to start, then start there. The rest will happen naturally.
Semi-Retire FIRE 