The most important part of becoming wealthy is not spending your money, but of course this is never possible. Instead, a method of spending has been brought to my attention through a financial blog post called Get Rich Slowly. The point writer Holly Johnson makes is that being careful about when you spend money can help a budget stay on track. Johnson tells the story of how she and her husband brought their spending under control by always being one month ahead on payments.
When learning about the Time Value of money in class I was inspired by the idea that value and wealth can be created over time, if calculated wisely. Johnson’s idea relates perpendicularly as the consumption of wealth over time is equally important. When it comes to my own spending, with the little income I have as a student, I have to be very careful. I believe if I can stay a month or more ahead that will mean I won’t ever miss a payment or incur late penalties. Instead I’ll be able to use my money where it counts: creating value over time.
Image from “Get Rich Slowly” blog.