What was the best piece of financial advice that you have been given?

The best financial advice comes from the great Victorian novelist Charles Dickens through the character Wilkins Micawber in his novel David Copperfield. Micawber, having spent time in debtor’s prison, comes to the conclusion that …

“Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.”

This has become known as the Micawber Principal, the idea that it really doesn’t matter how much you make; what matters is how much you spend. You can make a million, but if you spend a million and one … result, you’re broke.

Controlling spending is the most important aspect of managing and balancing your personal finances.

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