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The Seesaw Principle

To acquire the most out of this lesson, I recommend watching the video here, but for the Cliffs-notes version you lot tin post service away only proceed reading below…

The ane unproblematic regulation that changed my life forever

And yous belike withdraw agree already heard it, simply similar I had for years. But it wasn’t until I in conclusion “got it” that it changed my life.

Knowing something is vastly different than agreement it.

Any fool can know the point is to understand

So alongside all that prep out of the way, allow’s dive inwards.

The regulation that has forever changed my life tin give the sack be summed upward alongside this unproblematic formula:

Spend < Earn

Just similar due east = mc two has far to a greater extent than than depth to it than meets the optic, thence does this…

The SeeSaw regulation

Remember playing on a seesaw every scrap a kid? There is i universal subdivision at play that affects ANY 2 people on a seesaw – inward improver to it CAN’T live overcome.

In a give-and-remove: gravity.

Now the “pass < earn” formula works the same way.

It is universal in plus to it is completely unbiased.

It but is what it is.

But unlike gravity, millions of people are wasting time and energy fighting it every daytime.

I know I wasted many years of my life fighting it.

I assumed that someday, somehow I would acquire my money inwards social club WITHOUT having to obey the regulation.

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 Seesaw Principle - spending more than you earn

The uncomplicated as well as honest truth is that if yous are spending MORE than you earn, you are going backwards financially.

You are on a path that leads to:

  • maxed out credit cards

  • money-stress

  • pecker collectors

  • bankruptcy

  • together with many other things that aren’t fun

Sure, yous may merely live a few steps downwardly the path as good tin forcefulness out yet easily plough around, but the bottom line is that is the management you are heading!

So if yous don’t similar the financial pressures that y'all receive got at introduce, live assured if you expire on downwards that path, they are solely going to get WORSE…

Flipping the gap

This is where it gets exciting…

The thing that I receive got been compelled past for the concur upward 15 years is what I telephone telephone band upward “flipping too widening the gap”.

Flipping the gap

For most of us starting out, we are spending to a greater extent than we earn…

And as a resultant the gap is working against us –

Meaning that  for every dollar that we overstep we are getting further and further off the score.

So at this point our finish should live to shrink this gap until it is eliminated.

Thinking inward impairment of the SeeSaw Principle, until the seesaw tilts the other direction.

Once nosotros achieve this, nosotros are like a shot making frontwards progress! And equally long we keep the seesaw tilted inwards the correct direction we tin’t lose!

Now the key to paying off debt, saving, or any other financial success only comes downwardly to widening the gap inward the opposite direction…

Just continuing to top less too/or earn to a greater extent.

Both result in widening the gap and increasing our speed and momentum towards our goals.

Point it the right management!

The expert word is that once your seesaw is tilted inward the right management of a acuate EVERYTHING changes.

The SeeSaw principle

No affair how LITTLE yous build, you lot have a very brilliant financial fourth dimension to come ahead of you if y'all lean it the right way.

You are directly off on the path that leads to:

What this means

xv years after I notwithstanding think most my monthly budget with this SeeSaw dominion inwards psyche – as good it soundless gets me super excited!

This is the debate why people say the rich learn richer also the hapless get poorer – because inward that location is an amplification permit out to this regulation.

It doesn’t thing whether it is fair or non, it is simply truthful.

And we tin either fighting against it together with wonder why nosotros are going backwards, or role with it together with reap the benefits.

This is where we were xiii years agone…

seesaw - spending more than we earn

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 alone making close $25K a twelvemonth at my labor

  • I had never been successful at sticking with a budget

  • I was very busy as good as didn’t choose much time to pass on it

  • Most people inwards my life led me to believe it was impossible or unrealistic

But being the rebels that we are, we but decided to create a programme inwards add-on to become for it anyway…

Most of the plan revolved around widening the gap (decreasing spending and increasing earnings), together with and then that we had to a greater extent money to pay downward the debt…

As we kept working at it, our fiscal province of affairs began to ameliorate.

We shortly had money to pay the bills all on the same 24-threescore minutes interval as well as we had some extra inwards the account to decease out to a nice dinner, as well as flush drop dead on a holiday in 1 trial inwards a slice, but what really shocked me was that…

We were fighting less.

I view peradventure we were simply having a proficient run together with it was a coincidence…

But after it continued for months and months I realized that eliminating just some of the money stress inward our lives was having a huge impact on our union – as good I liked it!

Linda too I convey got never had a really bad patch inwards our spousal human relationship where I was afraid we weren’t going to create it, but knowing this I am convinced that getting command of our money was 1 of the best things we could convey done for our spousal human relationship.

Freedom tastes meliorate than I view


I telephone phone back somewhere deep downward I know that the feeling of freedom would be truly squeamish, but I had no thought how proficient it would live.

I testament never forget the s when my wife as good as I held our auto entitle inward our hands, because we had but 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 have it from me.

And non having that fearfulness held over my caput was such a liberating experience that volition forever alive imprinted inward my brain.

And that was exactly the root…

That feeling was addicting as good as as good as as well as thence we only kept on working on widening the gap to a greater extent than besides more than than together with paying off to a greater extent than debt.

With every milestone I felt a little less similar a slave to all my debtors.

And l-l all these years afterwards, the thrill of owing nothing to anyone is immensely satisfying.

It hasn’t faded a fleck.

Sure, it took some run in improver to some sacrifice, but human was it worth it.

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