Controlling SpendingControlling Spending

Your wealth = Income – Spending

So, increasing wealth can be done by:• Investing and saving more, or• Spending less.

The BIG SECRET to generating wealth:

Spend less than you earn

You might say…You might say…

DUH!DUH!…but you might be surprisedhow many people don’t get it.…but you might be surprisedhow many people don’t get it.

• “Wealth” is not “large income”• “Wealth” is not “big spending”• “Wealth” is not “large income”• “Wealth” is not “big spending”

Americans are not saving money

Americans are not saving money

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

2000 2001 2002 2003 2004 2005

US Personal Savings Rate (2000-2005)US Personal Savings Rate (2000-2005)

and Don’t Spend Anything!and Don’t Spend Anything!Save,Save,1. Wait overnight.

2. Consider your motives – is this a need, or a want?

3. Don’t buy what you don’t understand.

4. Consider the opportunity cost – if you buy this item,what will you not be able to do with your money?

5. Seek wise counsel.

1. Wait overnight.

2. Consider your motives – is this a need, or a want?

3. Don’t buy what you don’t understand.

4. Consider the opportunity cost – if you buy this item,what will you not be able to do with your money?

5. Seek wise counsel.

and Spend Your Money Wiselyand Spend Your Money Wisely

Living Below Your MeansLiving Below Your Means

• Your budget will help.

• Automatic, forced savings will help too.

• You don’t have to give up buying nice things – just delay buying them.

• Delayed gratification makes things cheaper.

• Financial security is worth more than stuff.

• Your budget will help.

• Automatic, forced savings will help too.

• You don’t have to give up buying nice things – just delay buying them.

• Delayed gratification makes things cheaper.

• Financial security is worth more than stuff.

Save, and Spend Your Money WiselySave, and Spend Your Money Wisely

1. Wait overnight.

2. Consider your motives – is this a need, or a want?

3. Don’t buy what you don’t understand.

4. Consider the opportunity cost – if you buy this item,what will you not be able to do with your money?

5. Seek wise counsel.

6.

1. Wait overnight.

2. Consider your motives – is this a need, or a want?

3. Don’t buy what you don’t understand.

4. Consider the opportunity cost – if you buy this item,what will you not be able to do with your money?

5. Seek wise counsel.

6. ContentmentContentment

Now there is great gain in godliness with contentment, for we brought nothing into the world, and we cannot take anything out of the world. But if we have food and clothing, with these we will be content. 1 Timothy 6:6-9