Spend Yourself Wealthy

Spend Yourself Wealthy

It's your spending, not your earnings, that count most toward wealth. I think we all know someone who makes an incredible amount of money and still ends up poor. (cough: "Athletes'") It really is "what you do with the money" that matters most.

All else being equal (steady and improving income, no major medical expenses, etc.) you can have at least a million dollars in wealth by the time you are 65. It's all about putting your money in your bathtub.

Your bathtub represents at least 30% of your net income (N.I.) each month or pay period. It is the amount that is captured and saved. Now, its very important that you look at your bathtub as capturing AT LEAST 30%. There are a lot of demands on this saved money so the more you can capture the better.

Spend Yourself Wealthy: It's all about opportunity costs. If you choose a housing situation that costs you 25% of your N.I. instead of 30% then you can capture an additional 5%. If you choose transportation options that cost you only 12% instead of 15% then you can capture an additional 3%. Every little percentage counts and soon enough you are capturing enough water to overfill the bathtub. It's all about what better thing you can do with the money in the future.

Speaking of the future; the next step is to add bubbles to your tub. No joke, bubbles!


  1. Why are you being introduced to the idea of saving a specific amount as a junior in high school? Why not wait until you have a "real-job" or are in college or something?

  2. Why do you think the recommendation is at 30%, why not ten or twenty or even 50%?

  3. Are you ready to commit 30% of your net income each month to savings?


Lecture Guide

PowerPoint: Spending Plans

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