Canadian billionaire Frank Hasenfratz says:
‘You want to get rich? There’s one way to do it: Spend less than you make. If you spend less and you accumulate, you get rich.’
And, there’s some truth to this.
Take Warren Buffett as an example.
You’d think that a man who’s worth as much as $84.6 billion would live a super-rich lifestyle.
Most people would love to make all their material dreams come true with that amount of wealth.
Gold plated toilet seats!
But not Buffett.
The grapevine as it that he still spends $3.17 on breakfast at McDonald’s, gets $18 haircuts, and doesn’t even own a smartphone.
But is that really the secret to getting wealthy?
Not in my books.
Yes, I believe in being frugal. I am more interested in a great lifestyle – going skiing on a Monday – than a fancy car.
But, let’s face it. There’s plenty of people who live cheaply that don’t have Warren Buffett’s wealth.
He got wealthy through owning mega-cash-generating businesses through Berkshire Hathaway.
Because, look at it logically.
Let’s say you make $50,000 per year. You can maybe save an extra $10,000 by being frugal.
However, you could potentially 10x your income to $500,000 per year by starting a very profitable business.
That’s a potential $490,000 more!
And, yes that’s an exceptional income – but I know many business owners who bring that in.
So that’s the real secret that the ‘money experts’ etc. don’t tell you.
Real wealth comes from increasing your income – of course while keeping your spending relatively stable.
With all that said, here’s why being frugal is so great.
If you don’t spend a lot of money on ‘doodads’ (consumer items) …you’ll have more money to bootstrap a great business.
For example, you could save up a few $1,000 to buy your first Amazon product inventory…which over time, could potentially turn into a massive cash generating business.
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