Live within your means

Many a times, we forget this simple thing because we are doing well. Just look at America today and you get the answer.

There are many kinds of salesmen out there and I have nothing against them. I am one as well!! You sell the products and services that you believe in, where your core values tell you that it is right. For example, you may not see people who sell soda as ethical because it makes consumers fat.

Just like I hate credit card salesmen. I know of plenty of people who had to declare bankruptcy because of debts. And credit is the root of these problems. Before you point the finger at me for not educating enough consumers on financial planning, review your own spending habits.

Think about it. Our banks are only paying 0.125% interest and that wonderful card that holds the key to your future money is charging 24%. $1000 in the bank becomes $1001.25 and your $1000 bill becomes $1240 after a year. That makes you $238.75 poorer, which also means that you lose 23.88% of your wealth. Think about it.

The greatest challenge is not what we do when we are poor. But what should we do when we are doing well?