Bad financial decisions undermine happiness, break up marriages and ruin lives. They’re also avoidable with the most fundamental point of most personal financiers: “live below your means!”

True. Everyone should live below their means, in a way. But the expression is wrong headed because it implies focusing on “living below” rather than “earning more.”

This article will argue that rather than focusing on spending less than we earn we should focus on earning more than we spend. — for example, we should try to make money online. Semantics aside, this attitudinal difference is vital for long term material success.

The Perspective of a Miser

The perspective of the miser is someone who has determined that they’ll make ends meet by making it easier to meet them. Skimping out, drinking water, smaller meals, slower internet, hunting for cheaper gas; these are “defensive personal finance” measures.

Of course, these measures do work. That’s a given. You are most certainly going to have an easier time when it comes to paying the bills if the bills are smaller — this is especially true if you make money online.

“Making ends meet” is the art of making sure your financial income is the same or better than your outgo. As long as your needs and your earnings are at least matched up, you’re good to go.

Sort of.

If you focus exclusively on “making ends meet” you’ll be working harder in the long run. The reasoning is simple: your needs are relatively static. You need food, housing and transportation. Your income is typically also fairly static: you get a paycheck.

Focusing on “saving” your way to real success within a long period of time is possible with almost any income. It just costs more in terms of lifestyle. For the lower-class, investing means smaller meals or some other inconvenience.

Is there a better way to focus? Absolutely. But first, let’s do a background look at a specific kind of individual: the creator.

The Perspective of a Creator

There are dozens if not hundreds of “personality type” quizzes that can be found online. I admit, I’m often a sucker for them. But the profound difference between people isn’t usually listed in the test results because not any one personality typically succeeds. You can do well as an extrovert, an introvert, someone who focuses on sensing or someone who focuses on intuition. Almost any personality can succeed by focusing on its strengths.

But there is one way to almost guarantee success, and that is to adapt the personality of a creator.

A creator is someone who simply can’t function with the “same-old, same-old” and demands creating solutions and increasing efficiency at everything.

A creator is someone who feels like every action they take must bring about both short-term and long-term results.

A creator is someone who feels like wasting time and effort is a great crime, and seeks to maximize his or her time on earth.

For a more comprehensive analysis of the creator personality, read Why Some People Always Succeed. I detail exactly what I mean by a “creator.” The article is a must-read for anyone who’s tired of not reaping the benefits of financial success.

Choose Now: More Pain or More Money?

What I’m about to say does not mean you shouldn’t try to cut expenses for the sake of your budget. This is a necessity for most people. If you’re at a place where you need to drink water when you eat out, that’s perfectly fine and you should certainly do so.

The following is simply the proposal of a different perspective.

Warren Buffet didn’t become Warren Buffet because he only drank water at McDonald’s. (Though, to be fair, Buffet does routinely shop at Sam’s Club, a discount warehouse. Not the usual for a guy worth 50+ billion dollars.)

Steve Jobs didn’t become Steve Jobs because his car had above-average fuel efficiency.

No, the successful don’t get that way by skipping meals, or eating cheaper. That’s a way to make ends meet. It’s important for many (or most) people. But it’s not a good long-term game plan. It’s the best way to live in regards to the next round of bills.

The key to financial success isn’t about scrimping and cutting costs. That’s how you stop yourself from going bankrupt. Not going bankrupt is a lot different than being successful.

How to Make Money

There are always principles to how any function operates. Just ask a mathematician. These principles work in business, personal development, personal finance, basketball, style; you name it, there are principles. Here are some of the essential principles of building wealth:

• Become a Creator. Creators create where ever they go. They walk into a room and have to make one thing better before they leave. They spend all day focusing on productivity. They don’t get hung up on email, or funny vids on YouTube. They can’t help but rise to the top.

• Dump the Shackles. Society is filled with weird beliefs and presumptions that are simply foolhardy. I’ll be writing more about the following specifically, so make sure to subscribe. Each of these shackles, if believed, can destroy your financial future, period. Thee following “shackles” are completely wrong:
  1. You aren’t self employed.
  2. Not everyone can be rich.
  3. Wealth “just happens” to some people.
  4. You can’t “get rich quick”, and anyone who says so is a scammer.
  5. You can’t do well without a college degree.
  6. You shouldn’t focus on money.

• Build a Network. Remember, an economy is a social structure. Making money requires other people. If people like you, they’re more likely to give you breaks, do business or help you out. Besides, networking can’t hurt you.

• Passive. Income. A passive income is an income that’s going to come in even if you decide to take a 6-month break. Investments, owning a “hands-free” business, a website; all of these are fantastic ways of building your income. The great thing about a passive income is that it always grows. You can only move up.

Thinking beyond the culture norms, networking, focusing on a long-term income model, constantly looking for creative ways to be productive are all vital elements of building wealth. Master one, and your income will increase over the long run. Master them all and nothing can stop you.

Don’t focus on being a miser. Focus on being a creator. Don’t focus on scrimping your way to the top. Just build your way there.