You Don’t SAVE Your Way To A Million

Summary

• The key to getting rich is to spend less, but it's important to do it the right way. Decreasing your lifestyle spending lets you take more risks with higher returns.
• Personal risks usually have little upside, but professional risks can offer great returns. So, focus on the latter for better financial outcomes.
• Buying fancy cars or houses probably won't lead to significant wealth. Instead, investing in skills or accepting a lower salary for a job with more upside can lead to higher returns.
• Managing the balance between your expenses and income is crucial to taking these potentially life-changing professional risks.

Video

How To Take Action

I would suggest implementing a strategy to spend less on lifestyle luxuries. This doesn't mean cutting out all joy, but prioritize where your money goes. When you spend less on things like fancy cars or big houses, you free up cash to invest in opportunities with higher returns, like building new skills or taking calculated career risks.

A good way of doing this is by carefully evaluating your expenses. Create a simple budget to see what can be reduced without impacting your happiness and well-being. This will empower you to take professional risks, like accepting a job with a lower salary but higher growth potential. Remember, investing in your skills or accepting dynamic roles can yield huge returns over time.

Focus on balancing your spending with your earning potential. Look at your income and find ways to maximize it, not just by earning more but by making smarter choices. Maybe this means taking a course, networking, or even considering a career switch that aligns with your passion and profitability.

Remember, personal risks often don't pay much, but controlled professional risks can lead to great financial success. By keeping lifestyle costs low and investing wisely in professional opportunities, you can create a path to financial growth and security. It's all about managing the balance between spending and earning to make room for calculated professional risks.

Full Transcript

the easiest way to get rich is to spend less but not the way you think when you decrease your lifestyle and what you spend to live that allows you to take more risk in the bucket that has a high return personal risk has almost no upside professional risk has a tremendous amount if you buy a fancier car or nicer house the likelihood that that's going to be life-changing wealth for you in the future is very small but the likelihood that if you take bets on skills or you take bets on even a job you say hey I'll lower my salary if I can get more upside these are things that are more controllable bets that you get way higher Returns on but the only way you can do that is if you balance the risk between how much you spend and how much you earn