Wealth is for using, and using it should serve good purposes—whether to bring honor or to do noble deeds. However, spending extravagantly should be reserved for exceptional occasions that truly merit it. To ruin yourself financially for a great cause—whether for your country or a higher moral calling—can be justified, but everyday expenses must match your income. Spend wisely, within your means, and ensure your money isn’t wasted through negligence or dishonesty by those who manage it for you. Your spending should create an impression of abundance while costing you less than people imagine.
To stay balanced, your regular expenses should be no more than half of what you earn. If you aim to grow wealthy, they should be limited to one-third. It’s no shame, even for the powerful, to take an honest look at their finances. Some avoid this—not out of laziness, but because they fear the truth might upset them if they find their finances in bad shape. Yet, like a wound, financial problems cannot be fixed without first being examined.
If you cannot oversee your finances at all, you must carefully select those you trust to manage them and change these managers regularly. New employees are more cautious and less likely to take advantage of you. If you can only check your finances occasionally, you should convert as much as possible into fixed, predictable expenses.
If you are generous in one area, be thrifty in another. For example, if you spend freely on food, spend less on clothes. If you’re generous in entertaining guests, save on maintaining your stables. A person who spends lavishly on everything will soon find themselves in financial trouble.
When clearing debts or fixing your finances, avoid acting too quickly or waiting too long. Selling assets in a rush often leads to bad deals, just as letting debts accumulate can destroy you. Clearing everything at once may bring relief, but it often leads to a relapse into bad habits. However, clearing your debts gradually helps you build a habit of saving, benefiting both your mindset and your financial health.
If you’re trying to rebuild your wealth, don’t overlook small savings—they matter more than people think. Cutting unnecessary small expenses is less humiliating than resorting to petty ways of earning money. Be cautious before starting any recurring expenses, as they can be difficult to stop. But when it comes to one-off expenses, especially those that don’t demand a return, you can afford to be more generous and bold.
Bacon Blueprint 