This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
How might your net worth shift upwards?
Do you have an emergency fund?
If you lost your job, could you take 2+ years off from work?
Are you on track with retirement?
How much credit card debt do you manage?
How much debt do you manage in general?
How do you feel about your responses to these questions? Do your responses reflect a healthy financial situation?
Most people are financially constrained. They are on a hamster wheel, playing catch-up every single day because of one habit they won’t kick to the curb.
What is the habit?
Spending more than they earn.
If you spend more than you earn, you’re likely not investing and saving the amount you need to achieve financial freedom.
What would your finances look like if you spent less money? What would your savings look like if you spent less money? What would your net worth look like if you spent less money? What would your emergency fund look like if you spent less money? What would your credit card bills look like if you spent less money? How might your financial trajectory look if you spent less money?
Some people believe they need to earn more money to solve all their problems, but this logic is rarely true. You can be amply productive and experience lucrative financial results in a lower income bracket if you manage your finances correctly and efficiently.
Could you manage your finances more efficiently?
Look around your spaces. Do you currently use everything you’ve purchased? Look at your past checking account transactions, credit card statements, and purchases. Do you see any room for elimination? Are there areas you could spend a little less in?
Earning more money can be helpful if you already know how to manage your money today. If you’re not a good steward of the money you have now, you will likely carry the same habits into your new income bracket.
Always ask yourself, “Could I spend less money?” if so, “Where can I decrease my spending?” Once you identify the areas, cut the cord and mitigate or eliminate your spending in these areas to increase your available income to build wealth.
Wealth starts with your habits.
If you read the book Millionaire Next Door, you’re familiar with how ordinary people become millionaires by living modest, humble, and disciplined basic lifestyles.
It doesn’t take a high income to produce wealth. It takes consistently living below your means, monitoring your spending, and prioritizing what matters most: building your net worth.
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This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.