Having the right approach to money is the first battle that must be won on the path to creating wealth.

People at all income levels offer up excuses about why they can’t save any money. You’d be surprised how many people I’ve met over the years who earn very little but are great savers and those who earn a fortune but can’t save a cent (in some cases living beyond their means and borrowing just to keep up appearances).

It mostly comes down to attitude. If you don’t believe you can save money, then you won’t. If you believe you can save money, you’ll find a way.

It’s deciding which of these attitudes you choose that will determine whether or not you create wealth. The simple reality is you cannot possibly create wealth unless you can save some of what you earn.

That doesn’t mean it’s easy to save money! Many people are struggling to stay on top of the mortgage, the bills and cost of living but if you are going to create wealth, you must find ways to religiously set aside a little bit of money every time you get paid. It’s about paying yourself first and then living on what’s leftover. Unfortunately, most people do it the other way around… spend and then try and save what’s leftover, which usually ends up being nothing because there was no plan put in place to make the savings happen.

When it comes to money, you must choose between being a victim or a victor. If you want to choose the latter then the way to achieve it is through knowledge. Every decision you make is a choice and the choices you make now will determine how wealthy you are in 5, 10, 15, 20-plus years.

At the end of the day, it is what you’re worth, not what you earn. And that is where the distinction between income and wealth can be a motivator:

Income is the amount of money you receive on a regular basis. Essentially, it’s the money you make from working.

Wealth is the length of time you could maintain your current lifestyle without working.

You’re only wealthy when your money works for you. To become wealthy, your main job is to earn money and then put some of that money to work making more money for you. Your ability or inability to do that is the determining factor in whether or not you will ever achieve financial freedom.

As I said, saving money isn’t easy. Remember this though… people don’t become wealthy by accident. They start small and with the right strategies, patience and hard work a little becomes a lot!

If great financial advice is what you’re after then I’d love to have a chat.

Cheers,

Daniel