Home > Mom's Life > Family Finances > Family Budgets > Basic Rules for Financial Freedom: Make Wealth Happen

Slideshow Iconslideshows MORE


Basic Rules for Financial Freedom: Make Wealth Happen

8 of 15

Spend Less Than You Earn

I'm amazed how many people flout this simple but most golden of all golden rules. You have to live within your means. Control your spending. Allow yourself to create a little bit of savings, with which to generate more income. (Remember the rabbit farm? You can't breed more rabbits if you sell them all.)

This is about being informed and in control. You need to know what your income is and what your expenses are. We'll talk later about how to curb spending and make savings and how to cut up your credit cards if they've let you down--they do that sometimes, evil little things.

You also need to know

  • Any expenditure that is likely to come up
  • Any provision you've made for contingency plans
  • Any future income you may be entitled to in the way of interest or investments coming to fruition

And that really is about it. Where people go wrong is not whether they earn enough or spend too much -- both of those are fairly easy to overcome. No, the biggest mistake is not knowing what you are doing, where you are financially, and what is up ahead.

Next: Pay Off Your Loans and Debts as a Priority

From The Rules of Money Copyright © 2007, FT Press. Used by permission of FT Press, and Pearson Education. All rights reserved.

To order this book, buy on Amazon.


Top 2015 Halloween Costumes for Kids
Will your child transform into a dinosaur, a superhero, or the latest Disney princess on October 31? Take a look at 2015's hottest Halloween costumes for boys and girls of all ages!

Find Today's Newest & Best Children's Books!
Looking for newly released books for your child? Try our new Book Finder tool to search for new books by age, type, and theme, and create reading lists for kids!

8 Not-Too-Spooky Halloween Activities for Kids
Halloween can be too scary and gory for preschoolers and kids of all ages. Find non-scary Halloween activities and party ideas that make this creepy holiday more kid-friendly.

Ready for Kindergarten?
Try our award-winning Kindergarten Readiness app! This easy-to-use checklist comes with games and activities to help your child build essential skills for kindergarten. Download the Kindergarten Readiness app today!

stay connected

Sign up for our free email newsletters and receive the latest advice and information on all things parenting.

Enter your email address to sign up or manage your account.

Facebook icon Facebook icon Follow Us on Pinterest

editor’s picks