“Bill Gates didn’t get where he is today simply by cutting his expenses.”
You Can’t Cut Your Way to Wealth by Grayson Bell
One of the most talked about principles in personal finance is living within your means. Basically, don’t spend more than you make. While the principle is solid in concept, many people don’t follow it or have trouble keeping up with it.
As a personal finance writer, I have spoken about how to cut your expenses over and over again. After some time, I feel like a broken record. Cut your grocery bill, cut your gas bill, cut your utilities, cut your cell phone bill. Cut this, that, and everything else. When I was first in debt, I thought all I needed to do was cut my expenses. I was living above my means, so why not cut my expenses? It is the first step to becoming debt free.
What about afterwards? What happens when you actually cut your expenses? Will it free up enough money to allow you to pay off all your debt or retire? Probably not. Cutting your expenses will only get you so far. You can only cut so much before you are eating just beans and rice and washing everything you own with one bar of soap.
I have no issues with those who want to make their own food or hygiene products, but if you only focus on one side of the equation, you missing the other half. How do you grow your wealth?
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