Well today’s lesson in wealth building is all about analyzing our lifestyles and making sure that we are living properly, enjoying, but with the goal of earning income and making sure we are using that money effectively – to build more wealth. Many people actually think that if they see people with nice cars, expensive clothes, jewelry, etc that it automatically means that they are wealthy people. This is actually not the case and many times the wealthiest people and the ones that are earning the most residual income are the people that you would never even expect to have money.

You see what most people do is as soon as they start to earn a bit more income from their job or investments they start to spend that money on liabilities instead of assets. Ask yourself the question. Last time you got some extra money as a gift or maybe a pay raise what did you do with it? Did you invest it into something that will make you money down the road or did you spend it on something with instant gratification like a watch, a trip, car, more expensive apartment to rent, etc? Most people do fall into this column and that is why most people are not very successful.

What I’ve been studying and trying to apply recently is to live a bit below my means. I rent a decent apartment in Osaka for just under $600 a month. I could easily spend double this and live in a much nicer place but recently I take any extra money and put it into a recently purchased real estate investment as well as towards a few online businesses that I’m working on.

What I’m trying to say here is that if you are serious about wealth building and creating residual income then you need to stop spending extra money on things that won’t put more money in your pocket in the future. Instead of going out for lunch today make something at home and buy yourself a new domain name. Next time you get a raise at your job don’t automatically think about how you can upgrade your living, start thinking about what kind of businesses and investments you can get involved in.

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