I know this principle is stupidly obvious... but very few people actually do it.
In other words, you already know the 3rd wealth building principle, but odds are very high you aren't walking-the-talk.
To know and not do is to not know at all.
So at the risk of irritating you with the obvious, here is wealth building principle #3...
You must produce more income than you spend and invest the difference.
That's it! Like I said, this isn't rocket science.
The problem is almost nobody does it. If they did then they would be wealthy over time. It is just simple math.
Why? Wealth is a form of deferred gratification. When you save money you are building a small army of soldiers that self-duplicate into additional soldiers that grow until you have a massive army that supports you for a lifetime.
However, when you spend money you not only slaughter that one soldier but you also eliminate every soldier he would have duplicated into over your lifetime. It is a multiplicative effect.
Earning more than you spend and saving the difference is one of those principles that is "easy to understand but hard to live".
I know from first-hand experience how violating this obvious principle can hurt. I've blown it myself and it literally cost me lac's. I've coached countless clients who have made similar mistakes.
It is a really common problem. It is why most people never achieve wealth.
Yet, if you want financial security then you must obey this principle. That is not my opinion. It is simple, inviolable, math.
Your homework is to look at your own savings rate. How much of your earnings is growing into wealth? Is this consistent with your values and goals?
In the next lesson we will continue with the fourth wealth building principle in this series.
Finally, if you're liking these principles of wealth building then you'll love module 5 in my course teaching you how to design your own wealth plan.
See you in a few days with the 4th principle...