The Money Pipe theory explains that income is like water pressure and lifestyle is like the pipe; if you widen the pipe (increase spending) every time pressure (income) increases, nothing accumulates, but keeping the pipe stable (maintaining a consistent lifestyle) allows reserves to build up over time.
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Why your bank account never grows: The Money Pipe theory.Added:
So, think of income like water pressure and lifestyle like the pipe. If you keep widening the pipe every time pressure increases, nothing ever fills up. But, if you keep that pipe stable, suddenly, you've got reserves.
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