The Wealthy Barber Returns By David Chilton

  1. Know your opponents

It’s crucial to understand that no one wants you to save, your friends want to go out, your kids want that new toy, businesses want you to spend, the government needs you to spend for the economy to grow, bankers want you to spend so that they can lend you some more money, so it’s literally a fight of you against the world, understand this and you’ll be more prepared for battle.

Live within your means, think for a moment that you lived in a world where everyone was blind except you, would you overspend on that car? or that unnecessary piece of furniture, I bet the answer is no, live within your means, and stop worrying about what other people will think, if you can’t afford it, then don’t fool yourself and buy something, simply try to work a little harder, I guess some ideas and then you’ll be able to spend some.

Think before making major purchases, the novelty of buying something new fades off relatively quickly, it’s super cool to buy a new car today, but it is that cool to buy that new car a year from now? I don’t think so, I think you’ll be pretty bored by that car because you’ve been driving it for 365 days, the same is for shoes, I remember buying a pair of shoes that I was so happy about, and literally, two weeks later, I don’t really see them the same way anymore, because they weren’t new, so when you are buying something that it’s really expensive, always think a year ahead and think how you’ll behave and how you interpret this decision that you just made today.

Do not envy and compare, life is not fair, get over it, your rich buddy you afford things you can’t, your brother may be able to afford things you can’t, in my personal opinion, we should learn from your rich how to make money, if they are rich, they are rich for a reason, I would like to know how they got to the place that they are, I want to follow the work ethic, not their spending habits, because clearly they don’t over spend, because they are actually able to save money and be rich, unlike people like you or me, so already try to learn from them, the good things, not the bad things.

Now, we are going to get to saving, why do we need to save, why does your mom always keep bugging you, to save a little more, stop spending on dumb stuff, we need to save because we need to prepare for the ups and downs of like, you may be laid off, there might be an emergency happending to two years from now, that you have no clue, and you need to be prepare for them, also you need to save, because you don’t want to working until you’re hundred years old, Let’s frank, that would be very shitty, all your friend are either going to be dead or retired, and you are going to be working at McDonald’s.

So basic rules for sound financial life, if you start saving at 25, you should save 10% to 15% of your income, the later you start, the more money you have to put away, but keep it as a rule to save a minimum of 10 to 15% if you want to save more, that’s even better, and always have six month of expense available for emergencies, and remember going to Cuba, and fixing your heart is not an emergency, don’t make excuses for emergegncies, emergecies are really serious things that could happen to your, death, sickness, may be a huge car accident, a natural disaster, something like that, if you just feel you need to get away, that’s not an emergencies.

Now we’ll talk about pros and cons of the book, I really like this book because it gives me a framework and make me understand why I should not spend, and why I should save, I didnt really understand this before, but it does not give me any plan to make more money and increase my income, you can only save so much, but it would be much better if I spend the same amount of money that I spent today, but increase my income by tenfold,

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