Chapter 1
Learn to Pay Yourself First

Let's talk about budgets. You're never going to need one again.

Wait a minute. Wasn't the point of The Latte Factor to track how much you're spending so you can cut back and save? And doesn't saving mean being on a budget?

No. The point of The Latte Factor was to demonstrate that you earn enough, right now, to start saving and investing and building future wealth. And that means throwing away your budget.

BUDGETS JUST DON'T WORK
Why do most people think they need a budget? Because that's what their parents or grandparents told them. Maybe a financial expert. But were they rich? Were they free from financial worries?

Budgets don't work because they're hard. Just like diets, budgets ask you to deprive yourself today for a reward tomorrow. We're not good at that sort of thing. It goes against human nature.

Budgets don't work because they ask you to be disciplined and be controlled. But we don't like being controlled; we want to be in control. And for most of us, we're too busy to be disciplined—it takes too much time. You should never let your money control you. You should be able to do this with very little discipline and time commitment. So, for your own good, please dump those budgets in the garbage. There really is an easier way. I'm going to give you an alternative--a system that allows you to tear up your budget and never worry about it again.

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