Charlie Munger said “Take a simple idea and take it seriously”.
Getting rich and wealthy is a very simple idea.
How do you take this idea seriously?
You could look rich by doing everything better than the society. Drive the fastest car, drink the most expensive wine, live in the biggest house. But where is the real wealth?
Real wealth is what you don’t see. The wealth you have in the bank. The wealth you have in the investment accounts.
How do you create real wealth? You maximise your rate of savings.
You can build wealth without a high income but have no chance without a high savings rate, it’s clear which one matters more. (Also read Morgan Housel’s “Let me convince you to save money“)
I have always been a high saver. From the last couple of year, I have deliberately tracked my expenses in an excel sheet and have had great insights and learnings.
- I am creating wealth faster than ever.
- I am in control of my money. I am buying good luck with the money I am saving.
- I am more mindful than ever about my spending. Any big expenditure is given a considerable thought and discussion before the money is spent. We, as a family, evaluate the long-term benefits of expenditure under consideration.
- I appreciate reduction more than addition.
- I dislike unnecessary hoarding. Tracking my expenses has further enabled my inclination towards a minimal life.
- Improvement in savings rate has increased my leverage to do things I love.
- For each month of having a savings rate of more than 75%. I have been able to buy three months of free time.
Mindful tracking has resulted in dramatic savings and investments as evidenced by the chart below.
If you want to reach a certain goal, you have to track your progress.
If you want to get fit, you track your workouts and diet.
If you want to be a successful investment manager, you track the returns your generate.
Every success story is a take of constant adaption, revision and change – Richard Branson.
I have made my savings rate tracker publicly available for purchase. The price is cheaper than a cup of coffee. I hope it makes a difference to your life. You can purchase through the following link.