How to turn your overspending into prosperity

Overspending in America has become as American as baseball or burgers. To many, it seems to be the norm. However, the reality is very different. The average American spends $1.33 for every $1 earned. And this causes divorce, constant fear of not having enough, not being able to go on vacations, not being able to save for retirement or be financially secure.

Many people erroneously believe that you have to be very rich from the beginning to build wealth. This is not true. You can just be smart, disciplined, focused, and eager to achieve your financial goals.

Let’s take the example of two people earning $175,000 and having a child. The couple is living in New York. It provides lots of financial choices and opportunities for everything, how to make more money and how to spend everything they have.

For NYC it’s not a high salary for a couple however they can become wealthy and financially secure and let us show you how. They need to save money every year and they need to invest it. That is it.  How much they save is up to them, let’s take a look at several scenarios.

If they save $25,000 a year, which is $2,083.3 every month and they invest it into a combination of S&P 500 and Russell 2000 indices, reinvesting their dividends,  for 35 years and their return is 12% then they will have $13,397,810.80

This is not crazy, it’s just a compounding interest and time value of money.

You don’t need to know anything about the stock market to do this.

It can be as easy, as eating a pie, seriously 😊

All they have to do is what is called dollar cost averaging, in simple terms, when you get a paycheck whether it’s weekly, bi-weekly or monthly, deposit an equal amount of money into two market indices. That is it.

Don’t look at how the market is doing, whether it’s going up or down. It does not matter. What matters is that every paycheck you put your money to work, no matter what.

Don’t listen to anyone who says they are a market expert and you should invest in something “sexy” or whatever is hot at the moment. Most of the time when people are talking about this stuff, it’s already at the top and most people lose their shirts.

If you really want to gamble, fine go ahead, take only 5% of what you have planned to invest, and put it into a new and hot thing. 5% that is it. It will satisfy your need to “play” the markets.

Also don’t forget, you need to be liquid, so set aside an emergency fund first. So, if you need to pay to fix your car or need something urgently you should be able to cover it.

Also, always have at least 6 months of your annual income in cash, just in case one person is laid off or perhaps there are some health issues and you need time off, or for any reason, just have that money saved.

Want another cool example. Want to see how this couple can get even wealthier? They can make many choices.

It’s always about:

  • Choices
  • Habits
  • Income


Let’s cover choices first –

Do you own or do you rent? Where?

Here is something that might be unpopular wisdom, if you live in a large city, it might be better to rent most of the time. Why? Because the real state market usually underperforms the stock market. I know I know we have seen the real state market do extremely well for some time. However, we have to take a long-term historical approach.

To buy a house or an apartment in NYC would range from $ 700,000 to $2,500,000 then you have to pay maintenance, interest on mortgage, insurance, taxes and other expenses.

Or you can rent an apartment for $2,500 in a good neighborhood in Brooklyn or Queens and invest the savings at 12% in a stock market vs traditional 6% in real estate.

The couple can also choose to buy a car or to use Uber or Lyft and that might bring in significant savings.

Then it comes down to little things that matter a lot!!!

How often do they go to restaurants

How often do they order out

How expensive their clothing is

For many people these seem like necessities, however they are not. Do you need to order lunch every day? No. Cook your own food, get healthier, and enjoy a high quality of life. Me and my wife we cook every week, usually on Sunday evening, we cook for the week and then we just quickly make salads or other quick and small additions. We still order sushi once a week.

Do you know how much we save? More than we have ever thought possible. It’s $200 a week which is around $840 a month or $10,080 a year. Now let’s see how much we have added to us being wealthier?

This is crazy, it’s $5,402,005.96

Here is the calculator link if you want to check 😊 LINK

Did this get your attention? Good.

How about something as simple as coffee? Let’s figure this out. I used to spend $12 a day on coffee. That is $4,380 a year. Should I stop drinking coffee? No! I love my coffee. Even if the world stops turning I want my cop of coffee.

What did I do? I bought an expensive coffee machine, I spent $700 and now I spent around $60 a month on coffee beans. I also bought a milk frother for around $100. Now, that I have spend $800 upfront and now spend $720 on coffee beans, how much wealthier am I in 35 years?

Would you make your coffee for the day to have almost $2,000,000 more when you retire? I am doing it, I enjoy even better coffee and I love making it.


Now let’s talk what else you can do to become prosperous.

When you shop the main goal is always to buy what you need, sometimes what you just want and very rarely something that was in a spur of a moment, an emotional purchase.

How can you do it? Simple, use the tools that has developed for you.


Contact us at

Further Reading

Need help controlling mindless spending?

Download our FREE Chrome extension to help prevent impulse purchases when you shop online