Thursday, November 20, 2008

Financial Nuggets - 1

There are few accidental millionaires in the world. People who achieve financial independence, however they define it, make getting there a priority in their lives.
~Authors Stanley & Danko…The Millionaire Next Door

What each of us calls our 'necessary expenses' will always grow to equal our income unless we protest to the contrary.
~Author George S. Clason...The Richest Man in Babylon

Any thoughts or comments?


~Simply Me~ said...

Both quotes absolutely make a lot of sense. Clason's statement that 'necessary expenses' will always match our income unless we choose otherwise is true. If we constantly increase our 'required' living expenses every time we receive a pay increase, bonus, or financial reward that matches or supersedes the increase, how will we ever make advances in becoming financially free?

Stanley & Danko's book is in queue on my reading list.

Sandy said...

Thanks for the link. This book has made such a difference in my thought process. I am especially moved by the use 70% income, pay debt with 20% income, and save 10%.

I am now reading Dave Ramsey's Financial Makeover.

Derrjon said...

Love the quotes - the second more than the first. I think it all boils down to "when you do what you love the money will follow". Should making money be a priority in life? Not so sure...

Ms. MoneyChat said...

Simply Me: Yes, Clason's statement definitely captures our human tendency to expand our resources to full capacity.

Sandy: I hope to finish the book this week. So far it is an absolute great read. Hmmm, I'm thinking Christmas gifts this year;-.

Derrjon: I couldn't agree with you more, money should never be your motive and yes if you do what you love the money will follow. Here's the issue, most people cannot do what they love because their finances won't allow them to make those sacrifices. What the authors are saying is that you cannot ignore your finances, you have to have a plan (i.e. budget), and monitoring your finances must be an intentional part of your agenda - I like to call this "minding your business." If you don't mind your business, the possibility that you will have to get a "job" just to pay your bills greatly increase.