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What’s the biggest tip for building wealth?

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By startdig Wealth Planning

In this video Jason explains that the number one thing you must learn and understand, that indeed anyone can understand, is to learn how to control your spending.

“Do not worry about budgets. Budgets are for accountants”.

Learning to spend your money wisely is about you telling your money where you want it to go before it goes out the door.

Most people don’t think about where their money’s going to go until after an event/they spend it, and only then do they wonder where the money’s gone. And if you don’t master that, it doesn’t matter how much you earn, it doesn’t matter how much money comes in the door, you will never build wealth.

Jason emphasises that every little purchase will add up, and it’s the higher cost items that you really need to focus on.

A useful tip, before you make a large purchase, is to calculate how long you’ll have to work for to pay for it.

“So I recently bought a car. The principle was: I thought to myself, how many hours is it going to take me to earn the money to replace the money out of my savings that I’m going to use to buy that car? Is that worth it to me?”

As an example, if you’re buying a $150 jacket and you only earn $10 an hour, that jacket is not $150. It’s 15 hours of work.

Remember, that your house, your car, your clothes should not define your self-worth. And appearances can be deceptive.

The people who look like they’ve got the most money, can sometimes be the poorest.

Rich people are people who have choices. They are people who do what matters to them in life, they’re the people who’ve got things in perspective, people who get purpose from work as well as money.

And of course, having lots of money doesn’t necessarily mean you’re going to be happier.

Think about what money really means for you. What does wealth look like?

If you think about it honestly, and the answers may surprise you.

The information provided on this site is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different and you should seek advice from a financial planner who can consider if these strategies and products are right for you.

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