A higher salary will do more for your finances than pinching pennies ever will. However, if you don't learn to be frugal with a little bit of money, you'll probably end up with the same financial issues when you start earning more. Or, as financial author Patrice C. Washington puts it, "how you manage $100 is likely how you'll manage $100,000." Money plants image from Shutterstock
If you want to build wealth, financial security or financial independence, it's less about how much you earn and more about how much you keep. Being a millionaire doesn't make you immune to debt. For this reason, it's important to practice good financial habits from the start.
Here's what Washington, author of Real Money Answers for Every Woman, says about the matter:
How you manage $100 is likely how you'll manage $100,000. You're the same person with the same attitude, and the same behaviours and habits. It's not about getting more money. It's about being more disciplined with the money you have. When people wish for something later on, it gives them an opportunity to keep from focusing on improving themselves today.
Granted, having more money generally gives you more options. However, if you're not good at managing money to begin with, having more of it won't teach you how — it will just give you more to manage.
Check out the full post and interview at the link below.