Earn more than you spend is so simple and easy to apply but not many people are doing it. Why? because of easy credit and many people are already in debt before they started working. Many already owe the banks or some institutions because of their scholarships. Is there a conspiracy here? Are you being led to work for institutions for life? I let you decide.
I did not have a scholarship loan because I never went to college or university. So how did I get myself into debt? I remember when I was working in the insurance industry, we were encourage to apply for a credit card as soon as we qualify, to buy a car or a house as soon as we have enough for the down payment. In other words, to live it up, catch up with the Jones. I started to spend more than I earn and that's how I got caught in the rat race. I got married, go for my honeymoon, renovate my house, have kids, go for holidays, all on borrowed money. With the high interest that I have to pay, very soon I was overwhelmed by the debts and with the failure of my business venture. I have no choice but to declare bankruptcy
How many of you are able to relate to the above? I know of many people who are in debts and near bankruptcy, I hope you are not one of them. If you are then I urge you to start changing your habits and apply the simple theory of earning more than you spend.
If you are not in the above position, then congratulations. Next week, we will talk above how to allocate your income to grow your wealthfare.
