Successful, wealthy people do not just
suddenly become rich and successful.
Success is a process that takes place
over many years.
Long before most wealthy people
become wealthy, they make a habit of
living below their means.
The following is a list of ten spending
habits I've uncovered during my
five-year study of the rich and the
poor that will prevent you from ever
achieving financial independence:
1. Charging ordinary living expenses on
a credit card. If you are unable to
afford meeting your ordinary living
expenses and must resort to the use
of a credit card to meet your monthly
living expenses, you are, by
definition, living above your means.
Accumulating credit card debt is the
third leading cause of bankruptcy,
behind a job loss and medical costs.
2. Spending more than 25% of your net
income on housing costs. Housing costs
include rent, mortgage, real estate
taxes, utilities, insurance, repairs,
and maintenance.
3. Spending more than 15% of your net
income on food. This includes
groceries and does not include
prepared food. Prepared food is part
of your entertainment budget.
4. Spending more than 10% of your net
income on entertainment/gifts. This
category includes bars, restaurants,
movies, music, books, gifts, etc.
Eating out and any prepared food
you purchase is part of your
entertainment budget.
5. Spending more than 5% of your net
income on car expenses. Car expenses
include a lease, loan, insurance, gas,
tolls, registration fees, repairs, and
maintenance.
6. Spending more than 5% of your net
income on vacations.
7. Spending any money on gambling .
8. Going over the top on gift-giving.
Gifts are part of your entertainment/
gift budget. Sticking to your 10%
budget will prevent you from going
overboard on gift giving.
9. Spending more than 5% of your net
income on clothing . More than a few
of the wealthy in my study had the
Rich Habit of buying the bulk of their
clothes at goodwill stores. Many
Goodwill stores sell high quality
clothing at a deep discount. It may
require spending a few more dollars
on a tailor, but it's well worth the
additional cost.
10. Impulse spending. Spontaneous
spending is never a good idea. You
need to take the emotion out of your
spending habits. There is always time
to plan and shop before your spend
your hard-earned money.
Maintaining a spending budget for
various categories and getting into
the habit of writing down everything
you spend will keep you on the right
track. It will also open your eyes for
the first time. You will be shocked to
find out how much you spend on
certain budget categories — and
that's a good thing.
Getting control of your spending is
not an easy task. Once it becomes a
daily habit, however, it gets much
easier.

Thanks. But this works in AMERICA not in NAIJA