For most of us, the idea of getting “rich” or “wealthy” seems far fetched and of another world.  The truth is money is simple until we mess up the equation.  To create a wealth, one must create a surplus of money by taking in more than we spend.  This is the same concept as losing weight except we’re trying to get rid of the weight and gain more money.  You lose weight by burning more calories than you consume.  With money we’re trying to “consume” more money than we “burn”, thus creating a surplus storage of money or fat deposit if you’re more comfortable with the weight loss example.

Either way, the fundamental concept to creating wealth and amassing money is to create more income than we spend.  The greater the positive difference between the two, the more surplus money we have to do with what we like.  Like losing weight, accumulating wealth is difficult for Americans.  Why?  The simple answer is because we spend too much.

Americans, more often than not live beyond or at their means.  In other words, we spend more than we have and/or live paycheck to paycheck.  Credit cards greatly facilitate this way of living, but ultimately the responsibility falls on the consumer.  After all, it is Americans who decide to borrow from these credit cards and it is Americans that decide only to pay minimal payments – insuring that whatever was purchased will cost them far more than if they had waited and saved their money to buy the item outright.

Many are cognisant of this fact.  The proliferation of material against credit cards and their pitfalls is widespread.  Unfortunately, many are caught in a vicious cycle that will ensure they never have financial freedom.  We will talk more about the habitual nature of American consumers and how marketers pray on their subconscious.