1. Attitude adjustment: Think time, not money
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Almost every resource you have, from physical possessions to money, is potentially renewable. The number of minutes you have on this planet, however, is finite: Once used, they can’t be replaced.
Keep that in mind, and you may find yourself spending less, saving more and reaching financial freedom faster.
If you go to the mall and spend $200 on clothes, that’s $200 you could have invested. If you’d earned 12 percent on that $200, in 30 years you’d have accumulated about $6,600. Ignoring inflation and assuming you could live on $5,000 a month, forgoing those clothes today means retiring more than one month earlier.
Of course, you need clothes. But maybe you don’t need $200 worth, or maybe you could have gotten them for less. It’s your choice: expensive stuff today or leisure time tomorrow.
This is the philosophy I’ve been preaching since I wrote my first book, “Life or Debt,” back in 2001.