After cruising through the earning, money management, and investing wheels, do you get the feeling that you’re finally getting to the fun part – what to do with all that hard-earned cash?

You’re looking at the last wheel of our ride through financial empowerment, and it could possibly be the most important one for you to master. That’s because your attitudes, habits, and knowledge about spending most likely will be the key to your financial success…or failure. Do you know what main quality self-made millionaires have in common? You might be surprised to know that it’s not a high income. They are disciplined- they keep their spending to a minimum, so that they have more money to save and invest.  By controlling their spending, they avoid debt and are able to make regular, long-term investments from the time they are young.

Your money can be divided into two categories: income and expenses. While it’s easy to think that having more income is the solution to financial problems, the truth is that you have very little control on the amount of income you make. Sure, you can get a different job, a second job, or a promotion or raise, but reality is that you are going to have a set amount of income, and it’s up to you to make the most of it. The good news is that you have complete control over what you spend.

It may take you two weeks to earn a paycheck, but it’s possible to spend it all faster than it takes you to deposit it into the bank. Being able to distinguish between wants and needs is the key to being disciplined and getting your spending under control. Advertisers and credit card companies spend millions of dollars trying to convince you that life is easier and happier when you are able to buy all of the things you want and pay later. It’s important for you to understand the truth behind these messages, the choices you have to make, and the reality behind credit card use.

Spending money is certainly not a bad thing. It can be fun to work hard for things you want, to reward yourself, or to simply buy the things you need in life. But think of spending like this: too much of a good thing can be bad. Just ask a kid that eats all of his or her Halloween candy the first night. Not only is the candy gone, it might be a somewhat sickening experience to go through. It’s much more enjoyable to savor spending with some moderation, to only spend what you can afford, and to stick with your budget. The less you spend, the more you save and invest, and the more likely you are to accumulate wealth.

Fasten your seatbelts! You are closer than ever to getting on the road to financial independence.