The two sides of the equation for how to grow your wealth that we always talk about are:
- Make more money
- Spend less money
Often, we take aim at the first goal. But a bigger paycheck does not necessarily set you up for financial success. And it’s important that we understand the reasons why so that we can try to avoid them.
Holly Johnson, writing for The Simple Dollar, lists seven reasons that a bigger paycheck doesn’t guarantee you’ll retire rich. And it starts, as expected, with poor spending habits.