How Most People Spend

"The acquisition of wealth begins with the proper spending habits: Spend foolishly to be poor; spend wisely to gain wealth."

Most people want to be rich. Even if they are unwilling to admit it, most will say that they want to be able to own the types of things that rich people can afford. Even those who say that they want to live modestly still want to have access to "the comforts of life".

Typically, people go about trying to achieve this ideal by going on a "spending spree". Luxuries in the style of houses, cars, boats, clothing, fine dining, etc., can be obtained - if not with cash, then with a line of credit. And that cash or that line of credit typically forces the spender to go on another kind of spending spree - a "time, talent, and ability" spending spree (also called: "get a job" or "look for a better job").

An employer gives money to employees for spending their time, talents, and abilities at a place of employment. The steady paycheck that these employees receive allows them to purchase (or have the credit to purchase) the "good things" in life. And everything goes along smoothly, until...

They reach their financial limit.

The solution that many choose is to go on another spending spree - to cash in on their home equity, to spend their already taxed "time, talents, and abilities" on a second or even a third job.
Once again, everything goes along smoothly, until...

1) The financial limit is reached.

2) Their bodies physically wear out. (Also called: retirement)

What is the end of this kind of spending? Is this kind of spending wise or foolish? Is there another way?

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