If I want to be rich, then I should not be spending hard earned income on luxury items. But what's the whole point of slaving ourselves over our jobs earning our salaries and not get to enjoy the fruits of our labor? We all want big screen TV's, a great car, fantastic fashionable and great looking clothes and everything that life has to offer. But this doesn't mean we have to have them by spending our hard earned income.



"I deserve everything that I have right now, I have worked long and hard and what I buy with my money is none of anybody's business." True, but then again, what you are doing now, could or would probably lead you to debt and you would probably never reach your goals of financial wealth.

If we don't keep track of our finances, spending left and right on things that can be considered frivolous or just because its on sale, we would be limiting our cash flow and upping our liabilities. Not only are we having unnecessary expenses, but this is not a good spending habit.

The spending habits that we have formed over the years can cause monstrous financial disaster. Every penny that we waste can pile up and force us to get loans, credit card debts and other financial problems when we do need to purchase that is a necessity. If only we had planned for the future, saved up by eliminating unnecessary expenditures, then we would have enough money to invest in assets to generate passive income. The generated passive income can then be used to fund investments and luxury items.

I personally feel that by watching and making a list of everything I spend, I would be able to account for every income that I have and have the cash flow to invest when an opportunity comes along. Using money that is taken from a loan may entail high interests that might probably be more of a liability.

When I first started out to watch over my finances down to the last dime, I saw how much money I was wasting. I could see some people spend money on many gratuitous purchases which they could live without. By using their credit cards, they pile up a lot of debt, pay only a small portion of the credit card bill and entail more interest. For what? Something that just adorns their home and is soon forgotten. Even if they got the item at a sale, the interests alone are more than what they saved.

By eliminating this unnecessary expenditures and breaking away from bad spending habits, you will be amazed at how much you will be able to save and later on use to invest for more cash flow. What I did was to determine first what I could live and not live without and what is needed to be paid first and what could be paid last.

By determining your needs, you know what you must and must not buy. I'm not saying that you should just be subsisting on bread and water, but you may have to forego eating frequently in fancy restaurants and getting takeouts most of the time. By cooking your own meals, you can portion them out to exactly what is needed for each meal and save more than 80 percent in costs and wastage.

You also have to have self-discipline. Seeing a large display saying that they have a sale is not mandatory for you to go inside the store and buy their products. If you don't really have the need to have it, then control yourself, especially if you don't have the money to purchase such items and you will be buying the stuff on credit. Such reckless buying impulses can pile up and drown a person.

Having proper financial literacy, you will be able to curb your unnecessary expenditures. You will see that your money can be delved into more fruitful endeavors. You don't really have to buy two pairs of shoes of the same color, you don't need to have numerous sunglasses.

By taking actions, you will be able to control your finances and stop spending. You will see that with self-discipline and control, your finances would have no where to go but up.

In time, you will see that becoming financially self-reliant will have its distinct advantages. You will be your own boss and you don't have to slave for your money or for your boss. Get out of the rat race now and be financially educated. Get financial coaching from the people who knows what they are doing and they have their own success stories to back it up.

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