Spending less than your income is key to financial stability

retreat

sr. member

Activity: 1260

Merit: 429

Quote from: uche6215 on January 28, 2025, 04:47:55 PM

-snip-

Salary is not always enough for your needs and wants because inflation is in the rise in the world depending on your country the cost of living is increasing everyday so to be financially stable with the little earning you currently receive there a great need to prioritize needs and wants and always make sure that you spend less than what you receives in a month your monthly expenditures should not exceed your salary because that is one way that you are going to be dept free and be financially stable in this present time while waiting for that big move or investment that will change your life for the better

To achieve financial stability, it is not only necessary to reduce expenses and keep them below income, but more than that, a person also needs to build their emergency fund for unexpected things. And the most effective is to find other sources of income to increase their income - this is the only most effective way to achieve financial stability. Because if a person only reduces their expenses below income, it doesn't guarantee financial stability in the long run - financial stability goes beyond just balancing income and expenses - it also relates to how a person's wealth will be in the future.

Cryptmuster

legendary

Activity: 1904

Merit: 1176

Glory To Ukraine! Glory to the heroes!

Quote from: uche6215 on January 28, 2025, 04:47:55 PM

One key thing that people finds difficult is spending because there are always a thousand thing to do and spend your money on and with the current economic situation that we find ourselves the need to spending is just overwhelming that if you are not careful you will be running on credit even when you just received your salary

Salary is not always enough for your needs and wants because inflation is in the rise in the world depending on your country the cost of living is increasing everyday so to be financially stable with the little earning you currently receive there a great need to prioritize needs and wants and always make sure that you spend less than what you receives in a month your monthly expenditures should not exceed your salary because that is one way that you are going to be dept free and be financially stable in this present time while waiting for that big move or investment that will change your life for the better

But you should focus not only on spending less but also on increasing your income. This is difficult to do if you are an employee, because you will not be able to raise your salary very often, so you will have to either change jobs with a higher salary, or try to create additional sources of income.

Nowadays, there are enough opportunities for this, the most important thing is to have a desire to learn something new and develop in it. Over time, your needs and expenses will grow, so you need to make sure that your income also grows, then you will be able to stick to your plan and spend less than you earn.

Dr.Bitcoin_Strange

hero member

Activity: 826

Merit: 552

Leading Crypto Sports Betting & Casino Platform

In this economy, it's now hard that only one source of income can sustain some people before they get their next salary. So, I don't blame some people who ends up in debt because no matter how they try to manage and limit their expenses, they will still end up spending all their salary and yet every primary needs will not even be met. The solution that some people need right now in order for them not the spend more than their income is for them to get extra job or extra source of income.

dunfida

legendary

Activity: 3122

Merit: 1140

Quote from: mirakal on January 30, 2025, 05:54:27 PM

Quote from: Coyster on January 30, 2025, 06:03:10 AM

Easier said than done, due to inflation and low salary structure in third world countries, it is almost impossible to spend lower than what you earn, except you want to starve, stop paying the childrens school fees and prolly live on one meal a day.

That being said, the advice should be that people should try as much as they can never to depend on only one source of income, they should take advantage of the world we are in today, people are making money from social media and all sorts of things online, to live above poverty you need to have multiple streams of income.

If it’s impossible for us to lessen our expenses, then we should never stop finding ways to increase our income. Be it offline or online, if you know you have skills that will give you a great advantage, then seize it.

Don’t just focus on your daily job, as it will only give you a limited income. But work smarter, work on your side hustles as they will definitely lead you to achieve financial security in the future. Financial stability does not happen in an instant, but it’s a long working process. So you have to be patient and consistent throughout all the way to hit your target goal.

Its not impossible if we do speak about lessening expenses because everything will really be that depending into someones self control because this is the main thing that really needs up for you to do or something which is that sensible for you to do so. Spending up less than your income is always been the wisest thing that you do need up to consider or something that needs to be done because if you do go beyond with those limits then it will be that having that huge problem. Financial stability will be not only talking about having a day job but rather on having that ability on having that multiple sources of income on which this is something that you do really need up to consider or make out.

Using up your own common sense on how things should be deal on with then its understandable that you do need up to choose on which one will really be that beneficial for you. Spending up less or simply having that budget will be the best thing to be done and spending up on more than with that then its a common sense thing but surprisingly there are people who are really that doing the other way around on which usually ending up on having regrets on the end and there are situations like these.

ancafe

hero member

Activity: 1862

Merit: 748

Quote from: uche6215 on January 28, 2025, 04:47:55 PM

One key thing that people finds difficult is spending because there are always a thousand thing to do and spend your money on and with the current economic situation that we find ourselves the need to spending is just overwhelming that if you are not careful you will be running on credit even when you just received your salary

It is also one of the difficulties that is difficult for most people to avoid because even though the salary is small, shopping is one of the activities that is difficult to limit, especially for women. The bad economic situation teaches us to live more frugally, but in certain conditions we are unable to save because we have to meet our living needs so that buying something that is needed in the current conditions is very uncontrollable in price. Not many are able to control conditions like today because the problem lies in the unstable income and expenditure figures.

If spending on something excessively, maybe the problem lies with individuals who are unable to control themselves, but if the shopping is intended for daily needs as a means of fulfilling life, then that is natural because we have to fulfill it even though the price has increased significantly. What needs to be fixed is the pattern of income so that we can adjust the expenses and income that we get at work.

bitbollo

legendary

Activity: 3276

Merit: 3537

Nec Recisa Recedit

probably nowadays you must say: have a bigger income then your spend Grin

for some people the question should be "how am I spending my money"?

if you have a look on how much is required for daily living, you can just see that some jobs are becoming obselete and even with a lot of effort you can't achieve any stability.
if you add reckless consumism and a general ignorance there is the perfect disaster...

STT

legendary

Activity: 4102

Merit: 1454

Quote

If it’s impossible for us to lessen our expenses, then we should never stop finding ways to increase our income.

Its not a popular answer because its boring but the money you save in spending is more efficient. This pretty much applies to everything where you are taxed on your extra income, its super ironic that most setups for tax discourage earning more. The harder you work, the less you receive and it could explain the poor GDP growth in many countries.

The only thing that ever makes sense to earn more is to own the company which then employs you and the company grows worth more and indirectly you own the company. Then you can truely become rich via this method, its not exactly covered up but the amount of times I hear people discuss but miss this basic point is quite sad. Doing over time or two jobs is a treadmill experience, a serious amount of overtime will shorten your life time if nothing else.
I have worked double shifts in the past and in the end you are barely awake, just sleep and work is not the path to success; you most likely die on the drive home from being so tired imo.

mirakal

legendary

Activity: 3108

Merit: 1290

Leading Crypto Sports Betting & Casino Platform

Quote from: Coyster on January 30, 2025, 06:03:10 AM

Easier said than done, due to inflation and low salary structure in third world countries, it is almost impossible to spend lower than what you earn, except you want to starve, stop paying the childrens school fees and prolly live on one meal a day.

That being said, the advice should be that people should try as much as they can never to depend on only one source of income, they should take advantage of the world we are in today, people are making money from social media and all sorts of things online, to live above poverty you need to have multiple streams of income.

If it’s impossible for us to lessen our expenses, then we should never stop finding ways to increase our income. Be it offline or online, if you know you have skills that will give you a great advantage, then seize it.

Don’t just focus on your daily job, as it will only give you a limited income. But work smarter, work on your side hustles as they will definitely lead you to achieve financial security in the future. Financial stability does not happen in an instant, but it’s a long working process. So you have to be patient and consistent throughout all the way to hit your target goal.

DubemIfedigbo001

sr. member

Activity: 560

Merit: 377

Let love lead

I think all these boils down to proper planning, I always recommend people to plan the funds at hand before actually touching it. Funds if properly planned gets into good use as against utilizing funds without plans. Most people start utilizing available funds off heart and before they know it, they've spent a lot on mere wants and get into debts to satisfy actual needs. Emergencies might occur and that is why having a backup fund to tackle emergencies is always important.

Although for some people, especially very low-income earners, their needs outweigh their earnings. So, there is even no way to spend less, and I think those people should just try to find a kind of a side hustle in order to meet-up with their responsibilities, before they can even think of saving. I recently told my friend who posted on his status that he was broke that nobody is coming to save him until he fixes his mindset and works hard to make enough money to service his needs and I reminded him that he needs to save too, so he should wake up to reality.

Finestream

hero member

Activity: 3052

Merit: 606

Spending less of your income is a good start. If you spend less and save more, and then invest after, that will lead you to achieve financial stability in the long run. However, if you are earning less while the inflation is high, financial stability might be too hard to achieve. If you settle on that, you will only end up drowning in debt, which is a sad reality to most of the people right now.

This is where adding additional job or source of income should takes place. Not only because to prevent yourself from falling into debts, but this is the best way so you can make your ends meet without facing financial crisis. And throughout the process, having more jobs create bigger source of income which will make you sufficient enough to invest. Investing should be the last option because that will lead you to financial independence and stability if you know how to make your investment works and prosper.

Youngrebel

jr. member

Activity: 1

Merit: 0

It could sound simple and be said as common sense as it aught to be, but it is not always common as it seems. Managing funds these days needs extra carefulness and proper budgetary skills to judiciously use your income to meet up with the current demands of the economy.

The economic demands have taken a different shape leading to hike in prices of items in the market, making it difficult for people to live comfortable with their earnings. Most times some persons spend all their earnings and even borrow to sustain their selves before the end of the month. This is a very wrong practice as it is a the head way to doom and poverty. It is quite understanding that only salary can't make one rich, but spending beyond your earnings is way out out point.

The only way out for someone not to spend all of his savings and beyond is having multiple streams of income. Diversifying your streams of income is the way out of such situations in the current economy except your earnings are enough to meet up with the economic demands.

Rockstarguy

hero member

Activity: 1050

Merit: 592

God is great

Quote from: uche6215 on January 28, 2025, 04:47:55 PM

Salary is not always enough for your needs and wants because inflation is in the rise in the world depending on your country the cost of living is increasing everyday so to be financially stable with the little earning you currently receive there a great need to prioritize needs and wants and always make sure that you spend less than what you receives in a month your monthly expenditures should not exceed your salary because that is one way that you are going to be dept free and be financially stable in this present time while waiting for that big move or investment that will change your life for the better

Spending according to what you can afford without any stress is a good financial decision, it is better to even stress yourself in making a good investment that can yield better profits than spending so much on things that have no value. Spending on things that are not necessary is just financial load that will definitely make one to run broke and not be able to meet up with the major things that are in important.

One of the best financial management is just to live a standard of life that is not more than what you earn as income, this can enable one to be financially stable.

Zlantann

legendary

Activity: 1106

Merit: 1113

Quote from: bitterguy28 on January 28, 2025, 05:31:27 PM

is this not common sense? how will you be spending more than you own anyway when you do not have the means for it?

There are also people who have preferred to live above their means because they choose a flamboyant lifestyle. OP's message might be common, but it is important.

Quote from: Orpichukwu on January 28, 2025, 05:43:57 PM

Some civil servants from my place are good at doing that before their salary comes at the end of the month; they have already paid off more than what they are to be paid because they are creditworthy to some salespeople, and when the salary finally comes, in most cases it can't even cover up their debt, talk more of sustaining them for the new month. Some people are just like that; why, in some cases, there are unforeseen circumstances that can lead you to spending more than you earn, you borrow to meet that target.

If your salary can pay for your monthly expenses, you are just lucky. This is because the rate of inflation has made borrowing to survive very popular where I work. Most of my colleagues are in debt and don't even know how to repay them. What OP has said is common sense but it is not practiced by some people. People still want to live at the same level even when they are aware that inflation is eating deep into their income. Instead of adjusting their expenditure, they prefer to live in debt.

I have continued to devise diverse means to avoid borrowing. Most of the things I spend money on for pleasure have been totally deleted from my budget. My focus now is to cover my basic needs and save for emergencies.

Cryptomultiplier

sr. member

Activity: 980

Merit: 237

Quote from: GiftedMAN on January 30, 2025, 12:01:13 PM

Quote from: Roseline492 on January 29, 2025, 06:31:37 AM

Sometimes I usually asked myself that why is it so easy to spend but difficult to make the money because it could even take some persons years before they could see a million on their account but within few hours that one year of hard work can be exhausted. So actually is very easy because when you go out and see the good things if you don't hold yourself you can be just spending and spending, so there is nothing as beautiful when you spend less and save more, for example you are paid $3k and highest you spent $1,500 and keeping the other $1,500, it will make you to be very accountable in minimizing your expenditures.

Most people does not consider the times and suffering they encountered before working out some amount of money which they are paid at the end of the day and seeing that they have no investment plans the spending becomes very easy for them because people with the record of extravagant spending are mostly those who has no investment plans. From your elaboration, having $3000 as salary and spending $1500 is not bad but you failed to talk about your monthly investment as part of your plans because you can not keep $1500 when you don't make plans with it because you will definitely spend it buying things that are not really needed by you.

Not making a good plan or any plan at all, is a plan in itself, and more often than not, the result ends in poverty or chaos.

Although the cost of living in this region may bear down heavy and even with a salary, or spending lesser than normal, there are times where unforseen expenses can arise and a place to borrow or lend from becomes so far away, so one dips hands into savings or investments just to get a solution and might even get unlucky in the end.

When one can learn to manage the little earnings or salary they get at months end or per hour labour they can live finer and become richer in no time than as compared to someone who has several sources of earning income but spends the earnings on habits such as gambling and that ofcourse allows more losses and expenses to rise.

GiftedMAN

hero member

Activity: 1050

Merit: 627

Watch&Pray.

Quote from: Roseline492 on January 29, 2025, 06:31:37 AM

Sometimes I usually asked myself that why is it so easy to spend but difficult to make the money because it could even take some persons years before they could see a million on their account but within few hours that one year of hard work can be exhausted. So actually is very easy because when you go out and see the good things if you don't hold yourself you can be just spending and spending, so there is nothing as beautiful when you spend less and save more, for example you are paid $3k and highest you spent $1,500 and keeping the other $1,500, it will make you to be very accountable in minimizing your expenditures.

Most people does not consider the times and suffering they encountered before working out some amount of money which they are paid at the end of the day and seeing that they have no investment plans the spending becomes very easy for them because people with the record of extravagant spending are mostly those who has no investment plans. From your elaboration, having $3000 as salary and spending $1500 is not bad but you failed to talk about your monthly investment as part of your plans because you can not keep $1500 when you don't make plans with it because you will definitely spend it buying things that are not really needed by you.

Tigerheart3026

full member

Activity: 1018

Merit: 113

we need to maintain everything, although it's too difficult to manage our daily life, because most of the things are very expensive those are needed to live in society, mostly people can not make sure their financial stability because their spending is more than their earning, so they need to borrowing money from others but how long is it possible to manage this way? not possible.

Lida93

hero member

Activity: 980

Merit: 621

Leading Crypto Sports Betting & Casino Platform

Quote from: Nothingtodo on January 28, 2025, 05:38:56 PM

People are constantly facing shortages, but people are constantly working hard to fill that shortage.

It is necessary that we all must work hard to be able to cover our bills and meet certain saddled obligations that takes money out of our purse but in as much as we persistently want to work hard we should also strike a balance with oir expenditures by curtailing certain wants so we don't get to always work hard just to spend all the money almost immediately.

There are persons that are busy shouldering responsibilities and granting certain wants which they can do away with, and all of these makes them not to have savings despite how much harder they may work. So in some instances it's really not about working harder due to shortages of funds but it also depends on cutting down a few wants from needs and this has to do with setting our priorities right.

bakasabo

legendary

Activity: 2548

Merit: 1223

Explanation needed. If spending less than income is stability, how then it is possible to spend more than salary (more than you have) and what is that called? Imo something is wrong with that quotation. If I earn $1000, spend $800 during month, but I want to buy a TV that cost $300. According to topic I am financially stable, but the fact is that I cant afford to buy a TV. What kind of stability are we talking about? Stability to economize?

MainIbem

hero member

Activity: 1316

Merit: 379

WOLFBET.COM - Exclusive VIP Rewards

Quote from: uche6215 on January 28, 2025, 04:47:55 PM

One key thing that people finds difficult is spending because there are always a thousand thing to do and spend your money on and with the current economic situation that we find ourselves the need to spending is just overwhelming that if you are not careful you will be running on credit even when you just received your salary

Salary is not always enough for your needs and wants because inflation is in the rise in the world depending on your country the cost of living is increasing everyday so to be financially stable with the little earning you currently receive there a great need to prioritize needs and wants and always make sure that you spend less than what you receives in a month your monthly expenditures should not exceed your salary because that is one way that you are going to be dept free and be financially stable in this present time while waiting for that big move or investment that will change your life for the better

Situations like that occur when people fail to make budgets, it's true that expenses are getting chocked up based on the economic Situations in different countries but then when one makes plans by setting asides their budgets it would help cut unnecessary spendings it's those unnecessary spendings that make people live on credit even after receiving their salaries, which is why making budgets is very important, countries make budgets yearly talk more of an individual. There's a saying that one should cut their coats according to their size, in the sense that one shouldn't be living a lifestyle that beyond their salary, for instance someone earning a minimum of $50 shouldn't be living a lifestyle that's beyond that which is why I earlier stated that it's good to make budgets on a regular, it's something that's supposed to be normalised cause it would help cut cost and unnecessary spendings.

CageMabok

hero member

Activity: 1050

Merit: 844

Quote from: asrinur on January 30, 2025, 07:36:21 AM

Managing finances well is certainly very necessary, especially with the increasingly expensive cost of living. Prioritizing needs over wants and ensuring that expenses do not exceed income is a wise step to avoid excessive debt, although sometimes it is difficult to avoid it because in everyday life there are unexpected or sudden expenses.

Spending money in everyday life does need to be controlled well by people who are saving and still do not have much income each month. Because excessive spending on unnecessary things will always invite debt in life and that is what will trigger difficulties to be present very quickly in our own living environment. So important needs that are quite simple must always be controlled and while controlling this, we ourselves must also be smart in seeing new opportunities in other jobs so that there are new sources of income that we can use to achieve greater desires one day.

Topic: Spending less than your income is key to financial stability (Read 319 times)