Young Entrepreneur - Spend Less Than You Earn

Latest Interview: Interview with Trent Hamm of theSimpleDollar.com - one of the most successful sites on the net (over 27000 RSS Feed Readers) related to personal finance, getting out of debt and living a debt free life. Check the interview out here: Interview with Trent Hamm of TheSimpleDollar.com

In April 2006, Trent went through a complete financial meltdown which lead to him trowing myself head first into trying to figure out every nuance of fixing his financial situation. Within eight months, he had paid off all of his credit card debt, paid off his vehicle, and also had established an emergency fund. There is some great advice here for Young entrepreneurs.

The question I highlite this time is Trents response to: What in your opinion are the biggest financial mistakes that people make with regards to how they manage money?

Personal finance can be explained in five words: spend less than you earn. Do that always and you’ll be fine. The mistakes people make today usually revolve around spending more than they earn (usually credit card debt) or spending exactly what they earn (living paycheck to paycheck). If you commit to spending less than you earn every single month - and then
put that extra away for the future - you’ll be just fine. The trick is actually doing that!