In his words, “It is not all difficult for persons in good health to make money.” This recognizes one important factor which is that you have to be in good health to make money. He goes further to state that in pursuing wealth you must:
- Pick a vocation that is not crowded.
- Set your mind to this vocation and be focused in acquiring its skills.
However, in doing all these, one important principle must be obeyed which is “you must expend less than what you earn.” If this simple principle is obeyed then you are on your road to wealth. This sounds simple in practice and to the ear but it is not being obeyed to the letter. Often there is a misconception to this rule.
- Saving expenses where it is low and spending where it is high
It makes no sense in saving some money from denying yourself cheap and basic things and spending on the expensive things. One must recognize that when you deny yourself a few basic things that a negative vibe is sent to the brain that you have practiced true economy. Thus you are tempted to compensate yourself by spending on expensive things like new clothing, shoes, cars, furniture and giving yourself a treat once in a while and so on. However, upon careful review you would realize that what is saved from basic or cheap expenses does not amount to anything close to what you spend when each are summed up after a year.
- Saving on basic needs that could assist with growth
Barnum is very specific here. He gives an example related to the era where kerosene oil had not been discovered. He cites that you often find women such as those wives to farmers never light more than a candle a day claiming that you need to be rich to attempt such. However, Barnum points to us that such denials could only amount to only a little being saved yearly while a lot could have been gained if an extra candle was lit for reading. It is believed that these readings could open the mind up more and increase the farmer’s income.
In our time this could be you saving on your internet bills, refusing to get a device that helps you access information more such as a laptop, tablet or a good smartphone. Within us limits should be set as our aim is to tap into the functions of these devices and not to look good by going for the latest versions. We could perform almost the same tasks as wished and save up a lot of money by getting a used laptop, tablet or smartphone. In other words, purchase anything that could help you get more knowledge but do so in an economical manner.
- Being truly economical always makes sure income surpasses expenses
Barnum claims that “true economy” must be achieved by all means for true wealth to come in. He advises you wear your old clothes a little longer, desist from buying new gloves, make do with the socks you have presently, mend the shabby dress and eat the cheaper meal.
Relating this to our time means that you should continue managing that car, avoid investing in unnecessary new clothing, eat cheap meals (maybe home-made because they are cheaper) and so on. He insists that this is no mean feat but it can be attained with practice and self-control. This is because there is more satisfaction in rational savings than in irrational spending.