"The poor buy things, the middle class buys liabilities, and the rich buy investments." --Marotta Asset Management, Newsletter
I put this mantra right up there with 'spend less than you earn' in terms of simple, straightforward financial principles to live by. Check out the following article, written by an asset management firm, called Learning to Live on Your Own. Here's an excerpt:
The people who are struggling financially buy things and clutter their homes with them. The middle class buy liabilities such as boats and vacation homes and must spend money every month to maintain them. The rich, in contrast, buy investments. An investment is anything that pays you money.
Now that you are learning to live on your own, learn to live like the rich. The frugal millionaire enjoys both financial security and peace of mind. Living well within your means is a skill you may not have picked up from your parents or in school. Rather than learning from the so-called school of hard knocks, consider the following suggestions.
And don't forget to also check out Learning to Live on Your Own Part 2.