Monday, August 17, 2009

#3 Spend Less Than You Earn

This is post #3 on the topic of the Road to Financial Freedom. It deals with spending less than you earn.

If you have missed out on the earlier postings you can view them here:


This is basically a common sense approach to financial freedom but to many people out there, it just seems that this concept is too basic. Huh? You mean that is it...spend less than I earn...bleah..give me something harder or more sophisticated.

Yet the truth lies that many people are actually spending way above what they earn. Some people are simply spending ALL the money they earn! The problem with spending too much money or all that you earn is this: You will have no money left for savings.

Yes, it is as simple as that. Before swiping your credit card again, think whether you can truly afford it if you were just paying for the item using cash alone.

Another principle that I like to use is to pay yourself first. Always set aside the money that you will like to save first before spending the rest. Never ever spend your money and save the rest!


  1. Hi FF,

    Yes, many people do not realize how important this is. But over time I have learnt that as long as you manage to save 10% or more of your salary, you will never go broke*!

    *Except for emergencies and unexpected medical issues, of course (which technically should be fully covered by insurance anyway).


  2. Hi FF,

    I am daniel from

    I have added your site to mine already. Hope that you add mine to yours too!

  3. Thanks for the comments MW. It is always great to see you visit this blog.

    Savings are really such an important part of our lives that we must not forget to do it.

    Hi Daniel,

    I have added the link to your blog already.


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