A fundamentally crucial part of the journey to financial well being is the principal of spending less than you earn. And although there is no single road to financial well being, that one principal is what sets you up to not only begin creating your wealth, but to also keep what wealth you attain along the way. The reality is that nothing else can happen without following this one principle.

That principal holds true whether you make $10,000 per year or a million dollars per year! While the concept is straightforward, if you’re not following it, you just end up living paycheck to paycheck, just barely keeping your head above water. Not only will that keep you from ever creating wealth, but it’s at the very least no way to live. That kind of living only brings about stress, worry, anxiety, depression and other negative emotions.

”We need to stop spending money we don’t have.” – Paul Ryan

The way to master the principal of spending less than you earn is that you need to understand and realize the distinction between your needs and wants. For a lot of people, the distinction isn’t always so obvious and when faced with the reality of sacrificing wants for needs, it can also be emotionally painful. With honest examination, you’ll find the things that you feel are needs are actually wants in disguise.

Taking a closer look at these differences and how your money is being spent to accommodate them can be an eye opening exercise in discovering where money can actually be saved. Having money left over at the end of the week is the only way to improve your financial health and it starts with getting hold of your spending habits.

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