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The Rules of Wealth, 3rd Edition by Richard Templar

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RULE 40

Spend less than you earn

I’m amazed how many people flout this simple but most golden of all golden rules. You have to live within your means. Control your spending. Allow yourself to create a little bit of savings, with which to generate more income. (Remember the rabbit farm? You can’t breed more rabbits if you sell them all.)

This Rule doesn’t contradict Rule 35 about small economies not making you rich, by the way. You should live within your means but live well enough to be happy. If you don’t earn enough to have champagne every week, then have it only once a month. But do have it if it makes you happy.

This is about being informed and in control. You need to know what your income is and what your outgoings are. We’ll talk later ...

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