What we’re about to share with you is quite powerful. It has the potential to change your financial fate.
But we’ll warn you, it’s a blessing… and a curse.
It could very well change the way you view every dollar you spend. Or it could make you miserable and miserly.
We’ve written before about our “broken bowl” theory. It’s the idea that you can permanently boost your wealth simply by cutting the percentage of your income that you’re willing to spend.
It’s simple stuff.
To show you how simple – and to prove that this idea can greatly affect your wealth starting today – let’s look at an example.
Our family lives on what we affectionately call a microfarm. We’ve got everything you’d find on a full-scale farm (pigs, sheep, chickens and even bees), just on a whole lot less land. It’s the “broken bowl” theory in action.
Needless to say, we have a garden.
For several months, my wife had her eye on an arbor for the entrance to the garden. We looked at a slew of commercial versions.
The cheapest suitable arbor (we wanted it for our grapevines) had a price tag of $750.
No way. Not with this cheapskate footing the bill.
You see, there’s a greater cost to spending money. Most folks don’t see it. But there’s an opportunity cost with every purchase we make.
If we spent $750 on that arbor, we wouldn’t have $750 to spend tomorrow… or, more important, a decade from now.
That’s why, instead of shelling out the cash, we snapped a picture, swung by the lumber store and built the arbor ourselves. It cost us $97.79… and by enlisting the help of our son, we turned it into a beautiful Mother’s Day gift.
We broke our bowl… and suddenly had an extra $650. All thanks to our do-it-yourself method of wealth building.
Now here’s where the idea gets powerful…
What if instead of spending that cash on something else, we invested it?
At the stock market’s average pace, we could expect that $650 to nearly double in value within seven years. Compound that growth until we’re ready to clock out for the last time… and the cash we refused to spend on that arbor is worth more than $7,000.
In other words, we save a bit now… and have a nice vacation in retirement.
Granted, this is a bit of an extreme example. We can’t build everything ourselves. But we urge you to look at every purchase you make in this same sort of light.
Before you ring the register, ask yourself the true cost of the expenditure. What could that money grow into if you simply saved it for later? It’s a critical part of the “broken bowl” theory, and yet most men simply refuse to think this way.
But, like we said, this thinking can be a curse.
Done the wrong way – or too often – it could be a crippling way to live your life. You’ll be a financial hoarder… and your wife will start to loathe the lumberyard.
Remember, financial freedom is about having the ability to get what you want, when you want it.
It’s a fine balance.
Before you try this technique for real, we recommend starting by looking at every purchase you made over the past week. Determine the long-term cost of each. See what that money could have bought you if you had simply held it and invested it.
You’ll be surprised. It adds up quickly.
Everything has a cost. Most often, it’s far higher than what’s on the price tag. Few folks understand that.
Break your bowl, and buy only what you need. You’ll thank yourself in no time.
P.S. You know how we feel about the government sticking its greasy mitts into our wallet. But for once, the folks in Washington are actually having a positive effect on our Liberty. Thanks to a recently revitalized program, a select group of Americans – including some Manward subscribers – are about to receive checks for as much as $7,190. Click here to get in on this rare opportunity.