Spending less than you earn

GOLDEN RULES

I was asked at a barbecue for my best tip for how to get ahead with money. Wow, I felt put on the spot.

After the better part of two decades speaking to money experts, what nugget of wisdom would my Saturday afternoon, sausage, beer and cake-addled brain bring forth?

I fumbled for an answer in my suddenly blank mind. ‘‘Well, you can start by spending way less than you earn,’’ I said, which sounded a little critical, as if I were accusing my questioner of being a spendthrift.

Like a patient playing word association with their psychiatrist, my answer was revealing.

Had I taken more time, I might have glibly remarked that a good starting point was to be enter the workforce at a time when houses were sensibly priced.

But ultimately, getting wealthy requires generating a surplus to save, invest and pay off debts.

Wealth accumulation for the humble salary slave is a steady ❚ Spend less than you earn ❚ Invest your surplus

❚ Have a plan