Back in the day I used to take up on debt. I was so stupid, it took me years to realize one thing about liability debt.
I know we all have our needs, wants and desires – everybody has that – even the sickest person on Earth. We all have this in common.
But let’s not talk about the sick.
Let’s talk about you and me.
The thing I understood about liability debt is that it’s not worth it – it’s the first thing.
If you can’t afford to buy something in cash – it simply means that the product is above your means. You can’t afford that.
Many people buy cars, houses and other stuff with debt. When in fact those products are above the means.
Living below your means is understanding that if today you take a loan to buy a computer from a loan shark which has 84% margin it would mean that you would pay somewhere 800€ for a 400€ computer. That’s the rough numbers I didn’t do the math.
So you overpay 84% for that fucking computer. And when you want to sell that computer anyone will barely pay 50-100€.
I made that mistake when I bought the computer.
This was living above my means.
If you can’t afford in cash then it simply means you can’t afford the product it’s simple as that but it seems that many people, like it did, don’t understand that.
You have to live cheaper rather than be in debt. If you aren’t good with business and don’t have a solid business idea. It’s better to find investors rather than take a loan from a bank. But if you’re poor with cash like me – nobody’s going to give you a loan. Let’s leave asset debt alone this time.
Living below your means, simply means to live cheaper – maybe even be frugal for some time.
Living below your means will let you save some money.
I see many people working and doing their business but none of them have cash in the end of month – most people live from paycheck to paycheck. And working only pays when you work. So working is a lame strategy. Like Robert Kiyosaki told – jobs are for losers.
Every thinking person wants to do something on his own.
It may be business, coaching, writing – whatever man. The choice is yours.
But if you can’t live below your means – you won’t be able to save money. Because you’ve have spent it all on the ongoing month.
That’s why saving money is really important if you want to be wealthy and a bit richer.
The formula to riches is simple. Live cheaper. Save and reinvest the difference. It’s like the formula to getting ripped. Eat less and exercise – many people, including me, don’t understand that. But it works if you follow the rules.
Many people think that if you get a lot of money – your demands explode. Many people want money just so they could buy stuff and most of that stuff aren’t assets. That stuff is liabilities. Liability is simply a thing that sucks money out of your pocket. An asset is a thing that puts money in your pocket.
If you’ll ever be rich and you’ll be if you’ll read my blog – be sure to buy assets which keep filling your pocket with that sweet casherino.
We will get later in asset buying. Best assets are Real Estate. Because they last long. The cheapest asset you can buy is a website. But it becomes an asset only if it generates some income. And it will if you populate it with good content and it gets traffic and that traffic converts.
Living below your means simply means that you don’t increase your demands even if you get more money.
Imagine now you had a million dollar check from Google for Adsense, okay? And you buy a Lamborghini and puff suddenly you’re out of cash and that car sucks more cash for the gas.
It’s very easy to spend money on things we don’t need. It’s easier to save money than to earn and earning money is really hard. If you watch videos or read blogs who tell you that making money is easy they are simply ridiculing you to buy their fucking products. To opt-in into their email so they could market you their shit and eventually you’d lost the money.
Isn’t it obvious?
Why teach 1000 millionaires, when you can find 1000 employees that do the same shit as you do and then be yourself a billionaire?
Every single money making scheme is false, because that shit rarely works. Imagine we all would blog – so who would build houses and roads? When all people start to do the same thing. The best earn and the rest suck dick – because that never works.
I don’t tell you to open up a blog if you don’t want to blog. I don’t tell you to quit your job and pursue some mind twisted career aka your dream. All I tell is do whatever works for you and save some cash, repay your debt and live below your means so you would have cash in case of emergency – that’s it.
If you’ll hope that by reading this blog somehow your pocket will fill up with cash you thinking it wrong – because you can’t fill your pocket without a stable income.