Monday, March 17, 2008

Building Wealth

I think building personal wealth incorporates two different phases:

1. Spend Less Than You Earn (reducing your expenses etc)
2. Earn More Than You Spend (creating additonal income streams etc.)

I think it is important to first learn to spend less than you earn because if you don't, then your spending will increase as your income increases. But if you first learn how to spend less than you earn, then once you make more money it will be easier to save because you are already in the habit of living a quality frugal life.

I am still in the first phase of learning to spend less than you earn. My goal is to decrease my expenses without sacrificing my quality of living. Then I have a few new business ideas/ventures to get started on. But first I am focusing my energies on learning phase one better.

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