Frugal Frugal Frugal

What are the 3 basic words which are the foundation of Wealth Building?

Frugal Frugal Frugal

Well, yes, This is true. Frugality is the key of wealth building. Frugality means you live well below your means, it means that you spend less than you earn. Frugality is the only characteristic by which wealthy people have build their wealth.

If you spend less than you earn, than and only you can divert your rest of the money towards Long term Investing and than and only you can become rich. What most of the people in this world do is, They spend more than they earn. Means they use Credit Cards, take car loans, personal loans and many other types of loan…etc… And thus, when they get a paycheck every month, a significant portion of their paycheck goes towards paying those EMIs and Credit Card Payments.

And thus, at the end of the month, nothing left behind for long term investing. But truly rich and wealthy people are frugal. They live a frugal life style. Means they only spend behind what they need and not what they want. And thus, at the end of the month, they have lots of money left behind for long term savings and investing.

According to the survey, as high as 15-20% of Annualized Income of true rich and wealthy people go towards long term investing and building some serious wealth. And that’s why these people can never ever go broke. Because 15% of annualized Income going towards long term investing means you will remain financially free for ever until you do this.

Thus, there are several advantages of being frugal. Remember, the Foundation of Great Wealth Building is – Frugal Life Style. So Start becoming Frugal from today and get wealthy over the time…!!!