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Will power just doesn’t get the job done.
An automated dimmer ... in the 1950's!
Sure, on a day when you are feeling particularly noble you might set aside an extra $50 in your savings account or pay an extra $25 on that credit card debt. But, if you are like most of us, starting a plan and sticking with it gives you all the progress of a yo-yo. Want to hear some good news? You can circumvent will power by automating your way to wealth. Why does automating work? Because if you don’t see the money, you learn to live without it. [click to continue…]
Free Money Finance’s recent post, The Seven Pillars of Financial Success: Pillar 1: Spend Less Than You Earn emphasizes the absolute priority we must give to this principle in order to prosper financially. Based on Proverbs 21:20, “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has”, FMF says,
“Without this one, simple step, you’re dead in the water financially — you’re going nowhere. With it, you have extra amounts left over that you can save and invest — and thus grow your net worth. This is why spending less than you earn is the one, main key to financial success (and thus my best piece of financial advice).”
Who can argue with this simple logic? It is common sense, it is bible based and it is the best piece of financial advice that a very successful financial blogger offers. Done deal. Right? I thought so until this comment to the FMF post made me wonder:
“I’ve found out that the most important pillar is actually “Be able to make a Living Wage”. You have to make a living wage before you can “spend less than you earn”, unless you don’t mind sleeping in a cave (which yes, some people do).
If you don’t have any earning power, it’s IMPOSSIBLE to spend less than you earn, because no matter what you do or how many jobs you try to take on or get, they pay so poorly that you don’t earn enough to pay the most basic of life’s necessities (Shelter, Food, Electricity). That’s my problem (which I’m working on fixing).”
So now we have a dissenting and logical opinion: “One must make a living wage before it is possible to spend less than you earn.”
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