The Seesaw Principle
To set out the virtually out of this lesson, I recommend watching the video hither, but for the Cliffs-notes version yous tin sack only go on reading below…
The ane uncomplicated principle that changed my life forever
And you belike receive already heard it, simply similar I had for years. But it wasn’t until I finally “got it” that it changed my life.
Knowing something is vastly different than understanding it.

So amongst all that prep out of the way, permit’s dive inwards.
The dominion that has forever changed my life can live summed upward with this unproblematic formula:
Spend < Earn
Just similar due east = mc two has far to a greater extent than depth to it than meets the eye, so does this…
The SeeSaw regulation
Remember playing on a seesaw equally a kid? There is ane universal constituent at play that affects ANY ii people on a seesaw – every bit good equally it CAN’T exist overcome.
In a discussion: gravity.
Now the “top < earn” formula industrial plant the same way.
It is universal as good every bit it is completely unbiased.
It merely is what it is.
But unlike gravity, millions of people are wasting time and energy fighting it every 20-iv hr time period.
I know I wasted many years of my life fighting it.
I assumed that someday, somehow I would larn my money inward tell WITHOUT having to obey the dominion.
But the fact is, no matter how much money you make you will lose it all if your seesaw is leaning the wrong way…
The unproblematic together with honest truth is that if yous are spending MORE than you lot earn, you are going backwards financially.
You are on a path that leads to:
- maxed out credit cards
- money-stress
- nib collectors
- bankruptcy
- equally good every bit many other things that aren’t fun
Sure, you may only live a few steps downwardly the path together with tin terminate notwithstanding easily turn around, but the bottom line is that is the management yous are heading!
So if yous don’t like the financial pressures that you lot accept away handgrip like a shot, live assured if you lot maintain downwardly that path, they are only going to acquire WORSE…
Flipping the gap
This is where it gets exciting…
The thing that I take away handgrip been compelled yesteryear for the in decision fifteen years is what I telephone yell upwardly “flipping inwards improver to widening the gap”.
For almost of us starting out, we are spending to a greater extent than nosotros earn…
And every scrap a termination the gap is working against us –
Meaning that for every dollar that we go past times we are getting further too farther off the grade.
So at this point our finish should alive to shrink this gap until it is eliminated.
Thinking inward harm of the SeeSaw Principle, until the seesaw tilts the other administration.
Once we achieve this, nosotros are straight making forrard progress! And every flake long nosotros hold the seesaw tilted inwards the right management we terminate’t lose!
Now the key to paying off debt, saving, or whatever other fiscal success simply comes downwardly to widening the gap inward the reverse direction…
Just continuing to spend less besides/or earn to a greater extent than.
Both result in widening the gap and increasing our speed and momentum towards our goals.
Point it the right direction!
The skillful word is that i time your seesaw is tilted inward the right direction all of a abrupt EVERYTHING changes.
No thing how LITTLE you construct, y'all take hold got a real bright financial future ahead of you if you lot lean it the correct way.
You are right away on the path that leads to:
- No debt!
- Retirement savings
- Vacations
- Buying a menage
- Giving to a greater extent than than than you thought possible
What this means
15 years afterwards I notwithstanding recollect nigh my monthly budget with this SeeSaw dominion inward mind – besides it all the same gets me super excited!
This is the fence why people say the rich acquire richer inwards plus to the wretched acquire poorer – because in that location is an amplification upshot to this govern.
It doesn’t affair whether it is fair or non, it is just truthful.
And we tin either fight against it and wonder why we are going backwards, or run alongside it likewise reap the benefits.
This is where nosotros were xiii years agone…
Once Linda and I successfully shrunk the gap and we were finally spending less than we earned, our next goal was to pay off our debt.
But at that topographic dot were a few slight problems:
- We had over $46K inwards debt
- I was solitary making virtually $25K a yr at my work
- I had never been successful at sticking with a budget
- I was really busy inwards addition to didn’t handle much fourth dimension to pass on it
- Most people inwards my life led me to believe it was impossible or unrealistic
But beingness the rebels that nosotros are, nosotros simply decided to create a project design together with commence for it anyway…
Most of the plan revolved around widening the gap (decreasing spending and increasing earnings), in plus to hence that nosotros had to a greater extent than than money to pay downwards the debt…
As we kept working at it, our financial situation began to improve.
We before long had money to pay the bills all on the same 20-iv hr menstruum together with we had some extra inwards the line business concern human relationship to go out to a dainty dinner, too l-fifty go on a vacation 1 time in a slice, but what really shocked me was that…
We were fighting less.
I view perhaps we were but having a proficient run as well equally it was a coincidence…
But after it continued for months and months I realized that eliminating just some of the money stress inwards our lives was having a huge impact on our matrimony – too I liked it!
Linda as well as I have got never had a actually bad dry ground in our matrimony where I was afraid we weren’t going to brand it, but knowing this I am convinced that getting ascendancy of our money was i of the best things we could have done for our wedlock.
Freedom tastes amend than I persuasion
I telephone back somewhere deep downwardly I know that the feeling of liberty would be actually dainty, but I had no idea how skillful it would live.
I will never forget the 2nd when my married woman in improver to I held our machine title inward our hands, because we had just paid it off….
I felt similar I was floating.
The machine was FINALLY ours. Not the banks, but ours.
No thing what happened they couldn’t take it from me.
And non having that fright held over my chief was such a liberating experience that testament forever live imprinted inward my brain.
And that was but the showtime…
That feeling was addicting together with as good equally then we simply kept on working on widening the gap to a greater extent than besides more than inward plus to paying off to a greater extent than debt.
With every milestone I felt a piffling less similar a slave to all my debtors.
And l-50 all these years subsequently, the thrill of owing naught to anyone is immensely satisfying.
It hasn’t faded a fleck.
Sure, it took some go too some sacrifice, but human being was it worth it.
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