Editor: Crass Cash
I can prove from an economic stance that acting poor will make you rich. Look at a lot of the up and coming rich countries. What are they doing? Saving as much money as they can and then trying to maximize the return on those savings. When I was visiting South China 20 years ago I was amazed by all the bikes and lack of restaurants. Today, not so much. The Chinese acted poor because they were poor. But things changed. Eventually they started making more money, but they maintained the same lifestyle. The same thing that I advocate college students to do. Both have changed though. As the Chinese have grown richer, the growth rate for the country has slowly declined, as has the savings rate.
There's a direct link between the two. You'll notice the same thing with your finances. As your savings rate falls, so will the growth rate of your net worth. Increasing efficiency, increasing savings, and maintaining a certain lifestyle is the fastest way to build ones wealth.
How did you act when you were in college or starting out at a your first job? How did you grandparents act? I can't speak for everyone, but when I was in college I lived off of $12,000 a year. It would be double that now, but when you figure in inflation and other inevitablies then it's still not too bad. After all paying $350 a month for rent, which includes internet and cable is pretty hard to beat unless you're living in a college town.
As you make more money your lifestyle expenses grow. We call that lifestyle inflation. It's very difficult, but you must resist this at all costs! Certain necessary items will increase in price, this is natural and the only thing that you can is find cheaper trade offs. When you wonder what you should do. Just ask yourself, "What did I do in college?".
There's a direct link between the two. You'll notice the same thing with your finances. As your savings rate falls, so will the growth rate of your net worth. Increasing efficiency, increasing savings, and maintaining a certain lifestyle is the fastest way to build ones wealth.
How did you act when you were in college or starting out at a your first job? How did you grandparents act? I can't speak for everyone, but when I was in college I lived off of $12,000 a year. It would be double that now, but when you figure in inflation and other inevitablies then it's still not too bad. After all paying $350 a month for rent, which includes internet and cable is pretty hard to beat unless you're living in a college town.
As you make more money your lifestyle expenses grow. We call that lifestyle inflation. It's very difficult, but you must resist this at all costs! Certain necessary items will increase in price, this is natural and the only thing that you can is find cheaper trade offs. When you wonder what you should do. Just ask yourself, "What did I do in college?".
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