We know, the contradictory to be true.
And that’s why it’s hard for people to achieve extreme wealth. Society has made us chase after material possessions that make us look rich but really, we’re not. We buy expensive cars, clothes and live in houses we can’t afford. This leads to credit card debt and we bury our graves with our own wallet. If there’s one technique I can give you to help build a financial fortress around yourself, it’s the act of frugality.
I know, the word frugal is not sexy at all.
I’ve learned a very long time ago that if you want to achieve something worthwhile in life, you have to sacrifice the present moment. It could be spending your weekends working, not hanging out with friends, wearing older clothes and more. I know, it sucks but it’s the only way. There are times I have been so breaking I had to rely on payday loans but in the end, it was for the good of my dreams and not because I wanted to impress someone else.
I’ve studied so many successful people over the years and I can clearly see that when they first started, they were extremely frugal. It was only after several years of saving their money like a cheap bastard, they had enough to make that one big investment that made them rich.
After they became rich, they still liked to save money but they increased their lifestyle while watching their finances like a hawk. After seeing that, it made me feel more comfortable that they too had to live the frugal life for many years.
You reap what you sow
Look, if you’re not earning that much, don’t fall into the trap of trying to impress anyone with what little you have. That’s a dead end and you’ll waste years of your life. I’ve seen poor people go out and buy the latest smartphone to look rich.
I used to be stupid like that, when I didn’t have much and suddenly I came across a lot of money, I immediately tried to look rich to show off that “I’ve made it” but really, I didn’t make it.
One of my mentors told me his strategy to getting rich (he owns a private jet by the way), is to stay broke. You see, when you stay broke, you stay hungry and continually work hard to make more money.
I think this is the ultimate self-discipline for it’s easy to start earning more money when you’re broke, but when you have a lot more money, it’s really hard to keep working like you’re broke.
In my life, I’ve found that if I have little money, I work my ass off. But when I cross the 6 figure mark, I tend to slack off because I know I’m comfortable.
Therefore, over the years I’ve simply accepted that in order to create real wealth and have enough to invest in real estate or any other investment vehicles, you need to have cash in the bank. You need to build your reserves by being so frugal.
Don’t fall for the marketing trap that you should buy expensive stuff to look rich and impress your fake friends.