Finance is a complicated subject. It can, and has, made my head spin at times.
Building wealth, on the other hand, is very straightforward. No messy formulas to memorize or tricky equations to solve. Some may overcomplicate what it takes to build wealth by combining financial success with other topics such as investments or tax which can be complex.
Financial health is no different than other areas of our health. You do not need to fully understand cholesterol, body mass index, or high intensity interval training to know that if you eat junk food day after day and never exercise you will be unhealthy.
You do not need to fully understand income taxes, investment performance, or estate planning to become wealthy. Prosperity is achieved by spending less money than you make. Period.
Not just for one day or for one month, but putting the effort in to spend less than you make over and over again - this is what builds wealth. Wealth to allow you to extend your current lifestyle after you no longer have a paycheck. Wealth to perhaps help your children pay for a portion of college. Wealth to start a new hobby someday without financial worry.
Sure, investing, planning, and proper tax strategies can help magnify financial success, but only if you have spending under control or have ways to bring in more income.
I wish saving money was more complicated than this so I would have something to point to other than my behavior when I am falling short with my financial goals.
Building wealth requires resources, but it also includes sacrifice, understanding our attitudes and tendencies regarding financial matters, our sense of entitlement and personal expectations, even our history with money and personal stories play a part. None of us enjoy feeling pain or discomfort and making financial changes in our lives can sometimes involve some of these uncomfortable feelings.
Building wealth is simple. Look around though. It may be easy to understand, but it is hard to implement, practice, and maintain.
I have enjoyed sugary foods most of my life. Breaking this habit is much harder than I ever imagined. It is now a day to day effort for me to eat healthy. I try to stay mindful of nutrition because ultimately a healthy lifestyle brings me happiness. The life I want for myself and my family is slowly becoming more important to me than my hunger for sugar in the moment.
I am human though and I am not expecting perfection. Sometimes, sugar wins. It's ok. I have built that into my plan. No shame. No should be...
I just eat some chocolate and try my best to fully enjoy it.
(photo by SalFalko)