The Number One rule for Personal Finance: Spend Less Than You Earn. Many people think that by making more income, earn extra, the "not enough" money problem will go away. However, more cases proven that, the more money a person may earn, the "even" more money he or she may spend, if he or she doesn't master the art of "Spend Less Than You Earn".
Sound simple yet many failed to follow the simple rule. So, what is "Spend Less Than You Earn"?
- It means being in control of yourself;
- The challenge is being able to exert that much control over your behavior;
- There are a lot of emotional/psychological reaons for overspending, so control yourself;
- To say “no” to yourself when necessary, even it may feel bad;
- Sound familiar? NO More "If I wanted something, I got it, even if it meant more debt."
- The “freedom” to buy whatever you want whenever you want isn’t really a freedom at all.
One blogger did mentioned before why many middle income people having financial trouble, it is because they earn middle income but live in high-income life - fine dining, better house (renovation etc) and better quality car.