RULE 36: Spend Less Than You Earn

Chief Demola Seriki (Politician) with Chief Tunder Ayeni (Banker)
I’m amazed how
many people flout this simple but most golden of all golden rules. You have to
live within your means. Control your spending. Allow yourself to create a
little bit of savings, with which to generate more income. (Remember the rabbit
farm?

You can’t breed more rabbits if you sell them all.)

This Rule
doesn’t contradict Rule 32 about small economies not making you rich, by the
way. You should live within your means but live well enough to be happy. If you
don’t earn enough to have champagne every week, then have it only once a month.
But do have it if it makes you happy. 


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“I know it can be tough to live within your means
but if you are constantly in debt, all the prosperity that is rightfully yours
is going to some faceless bank Managers. I bet they’re enjoying spending it. I
bet they’re having champagne more than once a week. Why encourage them?”

This is about
being informed and in control. You need to know what your income is and what
your outgoings are. We’ll talk later about how to curb spending and make
savings and how to cut up your credit cards if they’ve let you down – they do
that sometimes, evil little things.
You also need to
know:
• Any
expenditure that is likely to come up
• Any provision
you’ve made for contingency plans
• Any future
income you may be entitled to in the way of interest or investments coming to
fruition.
And that really
is about it. Where people go wrong is not whether they earn
enough or spend too much -both of those are fairly easy to overcome. No, the
biggest mistake is, not knowing what you are doing, where you are financially and
what is up ahead.
I know it can be
tough to live within your means but if you are constantly in debt, all the
prosperity that is rightfully yours is going to some faceless bank Managers. I
bet they’re enjoying spending it. I bet they’re having champagne more than once
a week. Why encourage them?
I want you to know to the very week, the very hour,
what you earn. And I want you to monitor what you spend, what it costs you to
live – where you waste money, where you save money and where you spend money wisely.
As long as more is coming in than is going out, you’re getting the basics
right. If more is going out than coming in, you need to take swift and
effective action to redress the situation. 
From The Book; The Rules of Wealth by
Richard Templar
(Read Rule
37
of Rule of Wealth tomorrow on Asabeafrika)



Read-to-Wealth Series



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