"A fool may make money but it requires a wise man to spend it." - Unknown
"For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it." (Luke 14:28)
"By wisdom a house is built, and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures." (Proverbs 24:3-4)
The Poor Christian participates in feeling-based spending. He does not have a budget and has a debt-driven lifestyle.
The Rich Christian makes wise spending decisions. He avoids (bad) debt and budgets/plans all spending.
Most wealthy people know how to spend money properly, that's why they are wealthy! Here are 6 simple steps you can take to start acting like the wealthy with your money:
- Focus on your balance sheet income and assets.
- Establish a family cashflow plan (budget) to control your outgo.
- Establish an emergency cash reserve in order to avoid debt.
- Search for deals, negotiate, and use the power of cash for purchases.
- Avoid debt, especially on depreciating assets such as cars, motorcycles, other "toys," furniture, etc.
- Purchase a modest home in the best school district in your area.