This is the third episode of the triple constraint of saving frequently, investing prudently and spending wisely. In this episode we go over:

1. What is spending wisely?
   • Making objective and informed decisions on the necessity of the goods and/or services we pay for.
2. Parable of the prodigal son.
   • A son asked his father to give him his share of the inheritance. He went on to squander it in far away lands and came back home impoverished and seeking to be helped.
   • No matter how much money one may have, if they lack financial discipline/literacy, they will not be able to manage that money and will almost end up impoverished.
   • Second chances present themselves with new learning opportunities. With a second chance which each one of us can create, we can start over but this time with experience from past mistakes.
3. Budgeting.
   • Providing a sum of money for a particular purpose.
   • Write down your budget in order to see how your money is used. 
   • Fixed expenses versus variable expenses.
4. Opportunity cost.
   • Loss of the benefit from other alternatives when another alternative is chosen.
     • Opportunity cost of taking a vacation instead of spending the money on a new car is not getting the car.
5. The Richest Man in Babylon by George S. Clason.
   • Control thy expenditures; Don't spend more than you need.
   • What each person calls their "necessary expense" will always grow to match their income unless they resist the urge. Don't confuse necessary expenses with desires.
6.  Rich Dad, Poor Dad by Robert Kiyosaki.
   • Mentality.
     • "Live below your means"- Poor Dad Versus "Expand your means"- Rich Dad.
     • What are your expenses and how are they contributing to achieving your goals?