Live below your means

Of all the advice for wealth building, the simplest is probably the best:

Live below your means.

When you spend less than you earn, there are two benefits.

One, you create a surplus that can be invested for your ultimate and possibly early retirement.

Two, by living simply and frugally today, it's likely the financial life habits you develop mean you won't need as much money in retirement as the person addicted to perpetual consumption.

Whenever advice is offered, there is often a defence by the non members who attend on a regular basis:

"Hey, I live for today, tomorrow may never come and besides that, I work hard for my money and I should enjoy it, not live like a hermit"

Well, yes, live for today but start living below your means by developing good financial habits and drop defeatist or dismissive attitudes. You don't have to live like a hermit to be frugal and you don't have to waste money to be happy.

Remember, there is one thing that is sure to happen, if you don't plan for it :

Tomorrow.