If there is one thing I could go back and tell myself it would be this. In order to be successful, you need to always be moving forward towards wealth. In short, you need to always be saving money. You need to always be gaining and not losing, no matter how small. Everybody dreams and schemes on ways to become rich, instead of using the easiest way of all. Start saving money!
Listen. If you are living in a tiny one bedroom apartment and putting money away every month, you are much better off than the guy living in a huge house who can barely make his payments. In fact, if you are putting money away, this instantly makes you more successful than a lot of Americans. 35% of Americans have zero savings. That means if you just start saving, you are richer than 35 percent of people living in the U.S.
The self help industry has been built on two things. Goal setting and taking action. Taking “massive action” is what Tony Robbins has been selling to folks for 4 decades. He has made millions and millions of dollars selling this advice. But does it work?
For most people I would say no. You can take all the action in the world and still not see success. The reason for this is simple. Most people are working jobs. Now, you can work harder at your job. You can get a raise. You can start to make more money. But if you aren’t saving any of that money, it does no good. Your lifestyle will magically rise as your pay does. This is why you need to train yourself to sock money away.
Now, you could start your own business. You could take massive action. It might work. You could pick a really lucrative industry and have everything absolutely blow up and make you wealthy. But, statistics show this isn’t usually the case. A large percentage of small businesses fail. That is a fact. But nobody wants to hear this. Most people, after buying into the self help industry, think they can outwork this fact. Some will. Most will not.
I am not saying what Tony Robbins and other motivators are saying is wrong. I just think they are putting the cart before the horse. The much better and SMARTER option is to learn how to control your finances. Learn how to live below your means. Get out of debt and start accumulating money. Then, once you do this, start looking for opportunities. Starting a business on a shoestring and planning to take “massive action” is a recipe for disaster.
The much better option is learning how to accumulate money doing what you are currently doing. Then start a business that doesn’t cost much to start and can make a small profit easily. Then run that company like you run your life and start putting even more money away. Rinse and repeat. This is a recipe for success.
Much Lower Stress…
If you learn to live like this I will guarantee one thing. You will have much less stress in your life. Nothing lowers stress like being financially secure.
Look at Warren Buffett. He lives in a small house he bought 50 years ago in Omaha. He doesn’t have billions of dollars worth of homes like most hedge fund managers. Because of this, when the market goes down, he buys up bargains while other managers and banks look to him to borrow money. He has made one of the largest fortunes in history, in part, because of his frugality. He also happens to be a financial genius, but you get the point.
If you listen to Warren Buffett talk, he exudes calmness and rationality. If you look at other fund managers they are the complete opposite. This has been a big key to his success.
The Real Key To Success…
So what is the real secret to success?
- Be as frugal as possible. Learn not to waste hard earned money on things that lose their value almost instantly (i.e. cars, boats, clothes, furniture). You can have these things, but buy quality and use them as long as you can. I realize for young people this can be quite a task, but it is a VERY important lesson to learn.
- Earn as much as possible. Always be trying to earn more money. This is why saving is so important. People who are struggling to pay bills are typically not on the lookout for more money. They don’t care because it will all go to bills anyways. Earn as much as you can with the skills you have.
- Save as much as possible. Start saving every week. If you are in debt, get out as quickly as you can. Then start saving. Start BUILDING your wealth!
So there it is. Be as frugal as possible. Earn and save as much as possible.
I can’t stress how important this frugality thing can be. If you look into the lives of very wealthy people, you will almost always find that they are extremely frugal individuals.
Warren Buffett– His frugality is legendary. He is one of the richest people in the world and lives in the same house he bought when he got married.
Donald Trump– Most people think of Trump as a spender because of his planes and houses. He is frugal. I once read a book called Trump Nation. This Wall Street Journal reporter said Donald would use the reporters phone whenever he saw him to save minutes. Don’t know if this is true but it wouldn’t surprise me. Rich people like saving money.
Grant Cardone- Grant is a huge internet marketer and influencer who drives Rolls Royce’s and has a private jet. Grant said he drove a Toyota Camry until he was a millionaire. If you get deeper into his stuff he always preaches saving and investing money instead of buying toys you can’t afford.
These are just a few of the very wealthy people on planet earth. I have read many, many biographies in my life. Frugal spending habits are a thing you find very common amongst the wealthy people who run our planet. Extremely common.
This is not the shiniest or fanciest advice on the planet. But you know what? This is something that everyone can start right now. Everybody, no matter how young or old, can start doing this today. TODAY! Get after it. Start today. It becomes fun once you start. It is inspiring and you start to love it once you start gaining momentum.