I get a lot of questions about how to get rich, and my answer is very simple.
Don’t spend too much. Mostly save. Always invest.
Yet so many people do the exact opposite—invest poorly, spend way too much, save almost nothing, and remain willfully ignorant about their finances.
Why? Because they don’t understand their relationship to money.
So how do you develop the good habit of turning you situation around, get out of your hole, get on the right track and stay on it?
The first step in changing money habits is taking a cold hard look at your financial input and output by adding up all your earnings and subtracting all your expenditures over three months. If your number is positive you’re one of the few people taking in more money than you spend. If your number is negative, and like the majority of men and women, you spend more than you make.