I had a meeting with one of my mentors today, and this guy's been through it all.
He was in a dark place at one point in his life after hitting rock bottom with a gun in his mouth but he turned it all around and is extremely wealthy across the board.
He focuses on establishing financial wealth in our life, which is the focus of today's episode.
How do we create wealth in our lives? By saving at least 20% of our money.
Before the Industrial Revolution, the farmer worked the land and had his results shown that way. Now the average man shows his worth in the marketplace.
There's a time and place to invest in your business to live on less than you earn.
Are you saving money?
Do you live on less than you earned or are you stuck in that trap of earn, spend, earn spend.
It's known as Parkinson's Law, in which a man or woman's expenses rise with their income increase.
I just talked with a friend about getting about of credit debt, and he's now focusing on saving 20% of his income.
Don't make the mistake of "I'll save later."
"I just won't spend money."
That's not realistic, because there's always going to be miscellaneous expenses that come up, from paying for kids sports to spending money on gas.
We will always have to spend money, yet we can still do it in a way that we also save as well.
But don't be cheap either.
Realize that there are things worth spending money on and things that we can do without.
The point is this:
LIVE ON LESS THAN YOU EARN.
When the joy of saving becomes greater than the joy of spending, you will gain wealthy.
Create a discipline and a habit to say, "This is the way of a wealthy man."
You will find more deals and opportunities to invest in when you have a savings that bring certainty.
There is an economic value of certainty when you have cash in the bank and in your savings account.
You know who you are and where you're going when you have financial certainty.
This is where an addiction becomes a good thing when you become addicted to saving and gaining wealth.
Start saving NOW.
My young boys are learning this now, and there's a lot of certainty in knowing that if something comes up, we are prepared because we have money set aside for those inevitable rainy days.
