More money is not enough

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When people have little, they often think that having more money will solve all their needs. This is half of the truth. It is a fact that money is important but money is just a tool. Money is like a gun. A gun in the hands of a soldier can save a nation but a gun in the hands of a thief can destroy the community. The usefulness of money depends on who is using it. Having more money is not enough!

Expenses grow with income

If say you have a job that pays you $500 per month with no other income source, your expenses are limited to $500. You may have to use public transport and rent an apartment in a cheap high density suburb.

Moreover, suppose you get a promotion at your job and your salary is now $1000 per month. The expenses will also grow. Now you may decide to rent a house in a medium density suburb and get a loan to buy an entry level car from the bank.

Furthermore, assuming you are offered another job at another company after your promotion and the new employer decides to give you $5000 per month. Your lifestyle will change. Now you can rent a house in low density suburb or get a loan to buy a house and possibly trade in your small car to buy a more luxurious one like a BMW or Mercedes Benz.

Take note that on these three scenarios, there is still no money left to invest, save and give. This clearly shows that more money is not enough.

Wealth creation is a mindset

Few people believe that wealth is a mindset. This is why many people blame others or the government for their poverty.

I personally believe that we need the help of others to make it in life but we simply need them to teach us how to fish but not give us a fish. We need the government to give us a good environment for business but not the government to give us money.

There is always a danger in thinking that we deserve to be treated well or to be given things. We become entitled to things we have not worked for. If we do not receive those things, we blame people. This is what is trapping most people.

There are people who were born poor in a very poor country with no political connections or corruption but they are doing very well financially. On the same note, there are poor people in the richest countries in the world who were raised from rich families.

Can money ever be enough?

The short answer is, it depends on the mindset.

The easiest way to build wealth is to live below your means. What this simply means is that you are able to suppress your lifestyle to a level below your income level. This can be achieved as follows:

1. Saving and investing money first

Since expenses tend to grow with income. Spending whatever is left after saving and investing will limit your expenditure. It is very challenging to invest or save after spending because there will not be any money left. The model that works better is the one that prioritizes saving and investing money.

2. Living a simple life with a big wallet

Being modesty is the best way to save money. A humble person resists the urge to do things to impress other people. It is alright to wear poor quality clothes or drive a cheap car while you are building wealth. In most cases, by being a minimalist, you can speed up your financial freedom journey.

3. Delaying lifestyle upgrade

The easiest way to have enough money is to delay the lifestyle upgrade process. For example, sticking to the budget you had before salary or income increase. The increase can then be used to save or invest money needed before upgrading to an expensive lifestyle.

4. Buying an asset that generates income before spending

Most people in business know that if you are serious about making money, you do not consume your capital. You can only spend on profits. As long as your asset is generating money, you can maintain your lifestyle using profits. The key note here is that you acquire an asset first. If you spend first, it is very challenging to acquire the asset that generates income.

Summary

Having more money is not enough. The best way to make money is to live below your means. This can be achieved by:

• Saving and investing before spending,
• Buying an income-generating asset before spending,
• Delaying lifestyle upgrade,
• Living a modesty life.