I cannot stress enough the importance of saving.
Putting aside cash for future use, this should be the fundamental mentality that anyone should adopt, if they want to enhance their personal wealth.
Only through this way can anybody start accumulating wealth for investment, business or emergency purposes.
Sadly, this virtue is not being practiced widely enough by the people of our generation.
This is a stark contrast as compared to the times of our forefathers, who scrimp and save everything they have to start their business from scratch and to ensure that the basic well being of their families is taken care of.
All we see now is the growing number of people splurging thousands of dollars for a branded pair of shoes or handbag, without even a blink of an eye.
If you just have too much spare cash and you don't know what to do with it - okay, maybe spending this way is nothing to you.
However, most people who spend this amount on their shopping usually have limited income.
Once they make these purchases, they are often left with not much money to invest, to start their own business, or use when an emergency presents itself unexpectedly, all reasons which are listed above.
If you look carefully, you will realize that wealthy people and common folk spend money in different ways.
Wealthy people are tend to spend more on stuff that will bring them lasting value or a rate of return, such as stocks and the like.
In other words, they invest.
Conversely, if you look at the spending habits of common folk, many who spend on what they like without thinking, such as splurging one month's pay on a Gucci handbag, will actually face a lower possibility of ever becoming rich.
If you can't control your spending in the first place, how can you get rich? Oh, unless you're Paris Hilton, of course.
Or someone like her.
Well, I feel that this is precisely why many people complain that they have not enough money.
Simply because they spend away what they earn.
If that is not enough, this problem is potentially compounded if you throw in the availability of credit cards, which will allow you to spend much more than you actually earn.
In other words, you will find yourself in debt.
Of course, for people who enjoy shopping or buying stuff, asking you to totally give up on your hobby would be like asking for an arm, right? The solution, therefore, is rather simple: Spend less that what you earn, or earn more than what you spend.
By spending less than you earn, you must control what you buy by buying less, or going for cheaper alternatives.
By increasing your income to more than what you spend, you must brainstorm for ways to increase your cash inflow every month.
If you adhere to this rule, it will always ensure that you always have excess money to save or invest.