On amazon.com there are over 3000 books that purport to show people how to how to get rich. Most of them aren't worth the paper they are printed on. On TV there are numerous infomercials selling some course in how to get rich for hundreds of dollars. They aren't worth a darn either.
Let's face it, getting rich is simple. The formula is tried and true, and can be summarized in a few straightforward bullet items:
- live simply
- spend significantly less than you earn
- save the difference
- compound the savings at a rate significantly higher than the rate of inflation
- let time work its magic
This advice may sound like a collection of empty platitudes or a lesson from a Sunday School teacher. But there are numerous examples of people with modest incomes being successful using this approach.
Empty platitudes, indeed. I live on $800 per month - that's living extremely simply.ReplyDelete
But how am I supposed to spend significantly less than I earn when housing (a rented room in a house with six others) consumes more than half my poverty-level income?
A free market in housing would mitigate my housing costs, but I kinda doubt you support a free market in housing.