It starts innocently enough with the home mortgage. You find out what the bank is willing to loan, then you get “the nicest house you can afford.” Next comes the new car loan, the credit card with the $20,000 limit, and the generous home equity line of credit. You say, “Yes, yes, and yes! And why shouldn’t you?
They say that you qualify, but who are they?
Meet your creditors: the banks, the underwriters, the financial institutions. It’s in their best interest for you to borrow as much as possible, and for those interest points to just keep adding up. It is not in your best interest! We live in a society where it has become the norm to spend every penny earned, and then borrow more on top of that, as much as 30%. It has become such a standard, that most of us don’t even stop to ask the question, “Is this in my best interest?”
By going along with their numbers, you’re turning over the power of creating your own spending plan, and your own financial future as well.
You’re robbing yourself of a secure financial future. One of the key principles to living rich is to live below your means. In a world where people have grown accustomed to living on credit, I admit this might not sound like very much fun. But if you want to live your definition of a RichLife, you have to start making the choice to keep the bigger picture in mind. You have to pay the price now, so that you don’t end up paying the cost later.
- 10% of your income goes into savings first
- 10% toward paying down debt
- 10% you give away
- 70% to living expenses
How do you do it? What’s your favorite activity or pastime that requires no money? What kinds of investments help you to live below your means? I’d love to hear it! Leave your comments below or feel free to post them on my Facebook Page!!
As always …. thank you for reading and sharing your stories!
I am so grateful that you are a part of my RichLife!!