Wealth Creation Blog

One of the things that is very apparent to people pursuing wealth creation and starting from the low or middle ground is that it is difficult to find the money to fund investment and wealth creation. But as Jamie McIntyre points out, there are many places that you might be spending money that could be used to finance your future, and at the end of the day, perhaps all you need to do is do decide if your waste money is worth it.

Where Money Gets Wasted

Of course there are living expenses that you cannot escape. Those are not the monies we are targeting here (although if you live extravagantly or above your means and you are justifying that lifestyle as a living expense, that may be an area of spending that needs targeting). What we are really taking about here are the many large and small expenses that you keep that you could live without and not risk life or limb, sustenance or housing.

Take a look at where your paycheck goes. Account for everything. Recurring bills and living expenses will be easy, but also look at the little places that you are throwing money. These might be things like

• Coffee breaks

• Lotto

• Lunches/dinners out (or ordered out)

• Entertainment

• Recreational activities

• Interests you spend on, but never follow through on

• Wasteful living

• A hobby

• Spending on quantity, not quality

Some people find it helpful to keep a journal and a receipt for everything they do for a period of time—say for a week or a month. In review, it becomes obvious that there is a lot of fat in the budget that could go—numerous little expenses, and some big ones, that just don’t need to be there.

Sometimes an early wealth creation strategy requires you to sacrifice convenience a bit, but in the end tightening your belt will really pay off. Keep in mind that you can always replace the few cuts you’ve made later—but in bigger and better style, but you can never get back the time and resources you’ve lost that could have funded an earlier, more successful plan to build wealth and achieve financial freedom. I guarantee you’ll never miss that silly purchase when you are rich.

Sean Rasmussen
Wealth Creation Blog
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