The Secret To Becoming Wealthy

Before we can talk about wealth we must first define it.  For this post I will use merriam webster's definition:

Wealth (noun): abundance of valuable material possessions or resources

The "valuable material" is money for the context of this post.

If you follow these simple rules you will become wealthy:

Stay out of debt

If you do not have the money to pay for the item in full you go into debt to buy it.  In most situations this is done by a loan or credit card.  The result is that you pay more for the item than the original price.  This is not in your benefit and can set you back in your financial journey.

Live below your means 

If you spend, or pre-spend, 100% your paycheck you will never get ahead in your financial journey.   When all of your paycheck is already earmarked to pay off debt one household emergency will throw you into more debt and the cycle will continue.

Save your extra money

Saving your extra money will help you have the money needed to buy the items that you need and also help you buy things that you want.  If you have a household emergency you will have extra money on hand to pay for it instead of going into debt.

That's it?

These rules are simple but, hard to follow in our materialistic and instant gratification society.  I have been working towards becoming "wealthy" most of my adult life.  I have looked for shortcuts to these simple rules.  Unfortunately, I have not found any that work.  I struggle to follow these simple rules just like most people.

 

It is tough to hold off purchasing something we really want when we don't have the cash on hand to pay for it.  Most companies offer the ability to buying the item on credit or monthly payment options.  These feed on our childish desire to have what we want when we want it.  There are many times that I want to buy something simply to keep up with the Joneses.

 

I have decided to fight my impulse buys and follow the ways of the Frugal Jones instead.  This is a daily muscle that I will continue to build.  Some days will be easier than others.  

 

As I find "hacks" to help me stay on track I will share with the community so that we can learn and lean on each other during our financial journey.