Disposable Income There’s No Such Thing!

Let’s talk about spending habits. This topic is more than just refraining from buying expensive homes and cars. It pervades our daily lives in much smaller transactions. We are talking about developing a new mindset about what things cost, and creating a mental framework for deciding whether the cost of something is worth robbing from your future wealth to pay for it. Every dollar we spend has an “opportunity cost” attached to it. The Rule of Seven means that money invested at a 10 percent compounded rate of return will double every seven years. With this as a constant backdrop in your mind, think about what that $1,000 flat-screen TV really costs. Right now, it’s $1,000 cash (assuming you aren’t going down the debt rabbit hole and using a credit card). But had you invested that money, in seven years it would have turned into $2,000. In seven more years it would have been $4,000. So if you have a child right now who is four years old, and you hope to pay for his/her college when turning eighteen, that $1,000 TV stole $4,000 from your child’s education. So the decision-making process just became different for you. A pack of gum isn’t $1.50, but rather $3 … or even $4.50! Now I don’t want to turn your life into one of miserly existence. But I do want to instill the practice of conscientious thought before you part with your hard earned money … and even more so when your money seems to be not so hard-earned (flowing in passively from team overrides while your network marketing business is in a momentum phase). Here is a key topic that ties right in with the opportunity cost discussion.


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