"Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery." Charles Dickens-from David Copperfield"

This hub is about wealth. What does it really take to get rich? Exactly what is wealth? There are a lot of fancy definitions and economic theories but the simplest way to put it is this-wealth is the money you get to keep.

Whole books have been written on the subject of acquiring wealth but I would like to keep the focus of this hub on the simple rules that Mr. Dickens expressed so eloquently in David Copperfield. If you spend less than you take in you will gain wealth.

First

Lets talk about budgets. You must have a realistic budget for how your income and expenses are accommodated. For the first month or so you must document every penny you spend and what you spent it on. At month's end look at this document. See anything that surprises you? You will probably find that there are some areas that you can cut back on in order to better use your income. Remember, income is the tool you use to improve your life and position in the world.

Impulsive or Frivolous Spending

The entire nation has gone spending crazy and to make matters worse the government actually encourages wasteful spending and overuse of debt as a way to boost the economy. Disregard those economic idiots in D.C. and remember that excessive debt is your enemy.

Do you drink coffee or eat snacks every day? Let's take a look at how this can impact your finances. Say you stop at the coffee shop on the way to the office and get a coffee or latte and a pastry. How much did it cost you? About $3.50 you say?

Wrong!

It cost you $910.00!

Break it down. $3.50 times 5days times 52 weeks is nearly $1000.00 you spent. Now let's say you invest in a really good thermos and some small storage containers. Probably spent about $20 on that. Now, I know you like good coffee so get some gourmet coffee. You can get really good coffee for $6-$10 per bag. Coffee makers cost on average $15-$50 and filters about $2.

An average bag of coffee (1 lb) makes about 30 cups of coffee. Let's see how we made out by brewing coffee at home and using our thermos. Assuming you drink about 4 cups of coffee a day. That's 1,040 cups per year.

Now we come to pastries. Instead of buying out why not bake your own or get them in the supermarket bakery. The cost goes down from about $1.50 each to about .65 each. Now add .65 for a danish to about .30 for your coffee and you only spent .95. You spent only $247.00 and that is a savings of $663.00 just by not stopping at the coffee shop.

Your wealth increased by $663.00

That's just one example of some things you can do to increase your wealth by spending less. There are lots of other areas open for decreased spending. Use coupons and comparison shopping to save on food expense.

Save on energy bills by using fluorescent bulbs and managing use of washers, dryers and home electronics wisely. When not in use turn off computers and TVs and unplug them. This will save lots because just turning the TV or stereo off doesn't stop it from using power.

Save on entertainment by using Redbox instead of going to the movies. Use coupons for eating out and save substantially. Look at your life and you will see where you can add to your wealth by spending less.

" . . . Ride on! Rough-shod if need be, smooth-shod if that will do, but ride on! Ride on over all obstacles, and win the race!" from David Copperfield

Invest Wisely

To begin investing your money first invest in yourself by doing everything you can to get out of debt. Pay off your credit cards and Keep then paid off! Eliminating debt gives you money to invest in other ways.

Save at least 5% of your income each month. It may look small at first but soon you will appreciate what simple interest can accomplish. Make putting money into savings the first thing you pay and you will love yourself for it later.

Next, invest in a diversified 401K for your retirement. Then, if you've anything left to invest think about buying a little gold to go into the savings deposit box. It is pretty much guaranteed never to lose in value. Gold can also be traded as a commodity.

Another thing I'd like to impress upon you is charitable giving. Do it regularly and you will prosper as well as getting a terrific tax break. The more that you give to others the more your life will be blessed. Christ said this as well and I have it from reliable sources that He doesn't lie.

To sum up it's important to build wealth by reducing debt and expense. Something else that will save you some money is automatic bill paying from the bank. This will eliminate any late charges thus increasing your available cash. Being thrifty and wise witrh your money doesn't mean living like a monk. You can enjoy many activities and save money at the same time. Here's to success on the road to riches.