The millionaire who lived like a billionaire

Michael Jackson was described by the BBC as a Millionaire who lived like a Billionaire. This is proof of the cause and effect cycle as regards to dealing with money. If he had lived within his means, he would be in less/no debt, and so have less stress.

It is not a random coincidence that if you spend more than you earn, you will end up in debt and misery. Everyone has the temptation to overspend. The Richest man in Babylon says that having a budget will defend you against your casual whims and desires.

I am currently running a spending log, which I record everything I spend money on. I got this idea from a finance book, and many books recommend this as a way to keep track of your finances. I used to write down everything I got as soon as I purchased it, but now I just collect receipts and put them into a database once a week. It's amazing that I have always spent more than I thought I had. Only a system of real accounting can expose such holes in your budget.

If you don't have a system to monitor and curtail your spending, then no matter how much money you get, you will always have money problems, just like the millionaire who lived like a billionaire.