It’s been said hundreds of times and by many people, but it’s worth repeating because so many people don’t follow the advice.

The pattern used to be that people earned money and then spent money. They would end up with nothing, or zero. Nowadays it’s more common for people to spend money and then earn money. This practice leaves them with less than nothing, or a negative. As you can see, it’s gone from bad to worse.

I’ve talked about this in Living Below Your Means…? and it’s part of how you Increase your Free Cash Flow.

In order to move ahead financially we have to follow a different pattern than the majority.

• 1. Earn
• 2. Save
• 3. Invest
• 4. Spend

It’s very simple and yet the concept eludes so many. Also, many times we get caught up in the specifics of things such as investing and ways to cut costs/spending that we need to be reminded of big picture. This is why this topic can’t be addressed enough.

It’s possible to be actively saving and investing while at the same time getting deeper and deeper in debt. The whole pattern must be followed. Every once in a while, take a step back and review your larger financial situation. Make sure that one area isn’t being sacrificed for another.

 Subscribe to Fiscal Musings | Digg This! | Stumble it!