LIVE BELOW YOUR MEANS

We always hear people say "live within your means" if you want to be rich. But as I have read some books on how to get rich, they say the correct way to start building your fortune is to "LIVE BELOW YOUR MEANS". And it really makes sense. Imagine, if you live within your means, meaning all your income is equal to your expenses. Break-even point. But if you live below your means, there is savings since you live below your usual cost of living expenses. The extra money left can be a good start in accumulating your fortune.

Most of us live a life of paycheck to paycheck. That is because we have the mentality that since we are earning, we should spend everything we earn. But that is not correct. Just follow this equation by heart and you're starting your way to good money habits that will help you accumulate wealth:

INCOME - SAVINGS = EXPENSE

SAVE FIRST then spend what is left.