I discussed Monday the article from www.earlytorise.com about the 8 habits of wealthy people, and some of the points that it made. My one concern with the article was that Mr. Masterson says in one of his points that budgets don’t work and that rich people pay themselves first. While I agree with the pay yourself first dogma (everyone in this business discusses it), I can’t imagine a businessman like Mr. Masterson saying budgets don’t work. Yes, you have to have flexibility, and yes, most people plan out all their fixed expenses before savings and contributions to savings, but budgets don’t work? Most businesses have to have budgets, and I would contend that most people do as well, whether it is subconscious or more formally prepared. If you didn’t have a budget, what would stop you from spending as much as you want, anytime you want? Creditors, after a few months. I’m sure he meant to say that you should put your savings at the top of your budget, and figure out a way to pay the other stuff after that…?

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