People, who burn through cash, but still hope to get rich, tend to ignore and act on the timeless wisdom of "spending less than you earn and investing the difference wisely" even though it actually works, according to experts.
US financial coach Todd Tresidder told the Huffington Post that the advice is so obviously true that it doesn't seem valuable, and people look for some new, cutting-edge strategy that they have never heard before.
Tresidder explained the advice in length, saying that the first thing to notice is there are three separate but connected ideas in this one sentence.
First of all reduce your expenditure by cutting out unnecessary luxuries and secondly increase your income by improving job skills, changing jobs, working overtime or starting a new business, he said.
Lastly, invest wisely by implementing a conventional asset allocation of stocks and bonds using low-cost passive index funds or purchasing positive cash flow real estate in your local area.
Tresidder added that you must get all three steps right to maximise your wealth and if any one leg of your wealth building platform is wobbly then the formula won't work.