By | Andrew Lisa | sg.finance.yahoo.com
A rock star salary does not guarantee wealth. Whether you earn a little or a lot, when you blow it all, it’s all gone. The good news is that for every spendthrift who squanders a fortune, there’s a regular person with a regular salary who gets rich by living small, saving diligently, investing wisely and embracing an attitude of frugality and financial restraint.
A six- or seven-figure salary doesn’t always lead to a six- or seven-figure net worth, but real wealth is within reach with the income that you’re pulling in right now if you use it — and don’t use it — wisely.
No Matter Your Income, Wealth Starts With a Budget
Whether you earn $30,000 a year or $300,000, you’ll wind up living check to check if you don’t take a steady inventory of what’s coming in and what’s going out.
If you want to live rich, build a foundation of financial accountability by creating a household budget.
“A budget is a roadmap for spending within given income thresholds,” said Brad Biren, a tax and elder law attorney in Des Moines, Iowa, and founder of IQMOP.com.
There’s no shortage of money management apps that make budgeting easy and intuitive, including:
- Mint
- YNAB (You Need A Budget)
- PocketGuard
- Goodbudget
- Stash
- Honeydue
Luddites, of course, can use an old-fashioned spreadsheet or go really old-school by taking pen to paper.
