Spending less than your income is key to financial stability - page 3.

Porfirii

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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?

anyway sometimes people do not have a choice because maybe they have a family that they have to sustain so either way they still need to spend more than they own which is why they tend to look for another source of income

No common sense at all (at least when it comes to "common") because most people have mortgages, get loans, or at least have credit cards, which means that they spend more than what they own.

Some people like living this way, and some of them will even explain passionately how credit can help you make true dreams that wouldn't be possible otherwise. But I'm one of those who prefer to owe as less as possible, and save for the future.

GiftedMAN

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Depending on salaries alone for survival is usually difficult seeing the high rate of inflation in the world today, people should learn to get a skill or a business that can help them to have something more aside the salaries they earn. Before the current high rate of inflation the human wants has always been numerous but the resources and funds to satisfy the needs are insatiable but adding a little more effort by starting up a small scale business can help to better the life of people.

Reducing the high expenses on some of the unnecessary items to suit the current salaries is also helpful but then the salaries has never been enough in my country some people already takes loans even before the end of the month when they will be paid just to survive because the cost of living is affecting all the living beings in the country.

Apocollapse

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You need at least to earn higher than average living cost in your country, if you always able to spend the same amount to live when your income are keep increasing, then it will be true you can achieve financial stability.

I know making money is very hard than cut your expense, but you have to increase your salary because the bigger your salary, the higher chance you can have a good financial and retire earlier if you want.

YOSHIE

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

Spending less than your income is key to financial stability

Talking about financial stability is easy, doing it is difficult, you can pay attention to the population in your city, out of 100% of the population that has a monthly income of 40%, Whether they work in companies or government, 40% are chaotic today work tomorrow is not, today can not be money tomorrow and 20% more farmers.

Farmers and daily workers/laborers how they do to financial stability, while their needs have been delayed 3-4 days, once there is money that is actually delayed needs they cannot be enough, I mean more people who do not have a fixed salary than those who have a permanent salary. If the people today get money one to three days in the next day do not have money there is no way to make a little expenditure or stabilize their finances.

For this reason, at this time what we see the economy does not side with ordinary people, the economy is in favor of the upper class, such as entrepreneurs, officials and so on, ordinary people remain in economic matters to the row.

Victorybit1

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This is a very captivating topic and It's something that can actually help a lot of people. The reason why people go bankrupt even while earning is because they spend more than they earn. Here some basic things that you must keep in check 1)The kind of house you live in: comfort is important to everyone but there's a popular saying that goes as this "cut your coat according to your size" it's simply means that you shouldn't do more than what you are capable of. If you earn a 150 dollars monthly and your rent is above 500 dollars then you are making a financial mistake, cutting down the cost of this can make you do other necessary things 2) The last should be your day to day expenses, if you spend more than what comes in you'd definitely end up in debt before getting your income.

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Quote from: mu_enrico on January 29, 2025, 04:17:17 AM

"Spending less" sounds like a frugal living mantra which I don't like. I prefer the mantra of earning more (than you spend), meaning your focus is your income, not your expenses even though it sounds similar. If you focus on the expenses, you'll never achieve financial stability IMO if your income stays the same. Therefore the keys are:
#1 Your income and then
#2 Spend wisely

What you said makes sense, because if we focus on spending then there will be many things that we have to reduce spending on, logically we cannot reduce spending on primary needs in our lives. In my opinion we can reduce spending only on secondary and tertiary needs. As you also said, if our thinking is like that then we may not focus on other things that should be more important, such as increasing sources of income. Yes, maybe this is a very difficult thing, because after all it requires more effort to get other sources of income. However, it is not something that is impossible for us to get.

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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

Spending up money is really just that an easy thing to do but on the moment that you are trying out to earn up money then this is something which is really that hard to do and this is why if you are that mindful about expenses and stuffs then you should be mindful on how much you do spend because if you do saw that you are earning up less then you will be needing up that budgeting on which this is that relevant or something that you do need up to put up into your mind. We do have that different situations on the money that we are really that getting or earning because each one of us does have that different jobs or whatever the things that we are dealing into.

Financial stability on what we are really that targeting into this life and spending up will be regarding on your lifestyle because not all will be just that the same when it comes into this aspect. There are these situations that people are prioritizing wants rather than needs on which they do end up on having some problems or issues and we do know that regrets do always come at the end because once you do have this kind of approach about spending up on which is more than on what you do earn then you would be having that big problem.

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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?

anyway sometimes people do not have a choice because maybe they have a family that they have to sustain so either way they still need to spend more than they own which is why they tend to look for another source of income

Yes, it's common sense, but that thing is that when individuals salary is getting bigger, and so is there spending habits. And with that, it's a bad combination, maybe you started to get credit cards and then spend it right away, max it out and then later you have problems on settling your debt. Or you get a car, put a down payment, but you have to pay it out in the next 3-5 years.

That is the problem that the OP wanted to give us, to picture that when we get higher salary, we should stay on our spending habits like our salary didn't increase so that we can make and save money or invest in Bitcoin thru DCA method. And remember that those we become millionaire practice what we call "delayed gratification".

Roseline492

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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.

SOKO-DEKE

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

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

Lavishing has become a part of some people lifestyle, and yet they still complain about the state of the economy. I am fully aware that the current economy is not good, but with what some groups of people earn monthly or weekly, it seems unreasonable for them to complain. If someone always wants to avoid suffering during tough times, they must prepare for a worsening economy. The way to do this is by finding additional sources of income. With multiple streams of income, even during periods when the economy worsens, the situation will not be so dire that one has to suffer significantly.

Sometimes, people don’t want to spend more than they earn, whether it’s a monthly, weekly, or daily income. However, the reason some people spend more than they earn is that their earnings are not enough to meet their basic needs. No matter how much these people try to economize, they will inevitably spend beyond their income. The best solution is to find as many possible means of earning as you can.

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

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

Of course, expenses and income need to be calculated, to realize stability in the finances that you get, everything needs to be detailed when expenses are made, by managing income well, this can avoid loans that can be burdensome and that way you can set aside a small portion of your income to be saved, and at certain times can be very helpful.

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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

The truth is that financial problems come your way the way you are earning money; if you earn much, your problem will be much. Let’s be sincere, and you will also find some things to do because you have the money to do them. Some things are not really compulsory, but because you have the money, you will want to do it, and that is why some people earn enough but are still yet to be certified financially.

However, when you are talking about salary, I don’t really know how people who only depend on salary meet their needs without being on credit, because after receiving your salary, you will still wait for the next 30 days before you receive another one, and problems are always coming, even the ones we didn’t expect sometimes.

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"Spending less" sounds like a frugal living mantra which I don't like. I prefer the mantra of earning more (than you spend), meaning your focus is your income, not your expenses even though it sounds similar. If you focus on the expenses, you'll never achieve financial stability IMO if your income stays the same. Therefore the keys are:
#1 Your income and then
#2 Spend wisely

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Priority our daily needs will be important so we don't spend all of the salary but we can save some money for the urgent situation. We can list our primary needs and secondary needs so we will know how much money we still have. With that money, we can use to invest or saving the money so we will have some money for prepare our future.

We don't have to take a loan to fills our needs especially if that is not too important needs. We can live simply without spending too much money or just to follow lifestyle. Life is just once so we need to use that for better things.

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

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

practically, you can not spend above what you are earning except you want to resort to taking up loans before you pay for the next month comes in which obviously is going to be your surest rout to straight up poverty and financial enslavement. it is bad enough that you have to depend only on your salary let alone not being responsible with regards how you go about spending what is coming into your hands at the end of the month.

your adaptive ability is a gift that we all have and it helps us to make do with whatever income we have or whatever resource we have at a time. if what you earn at the end of the month is just an $100, with proper management, that can give you the same kind of life another that is earning up to $500 is struggling to meet up with even with his high pay. spending according to your income is important both for the high and low income earner, it is one thing to earn high and another to have the ability of managing your finance and not get swayed into spending too much just because you have a sort of surplus funds. raining days might come but a man that spends less than he earns will have surplus that will go into savings that will come into use at the time finance might seem insufficient to solving some core needs.

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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

Financial stability is directly proportional to expenditures, when you spend more than your wage it's certain that you will definitely incur some debt to enable you balance your financial obligations and going by this way you cannot be able to have alternate investment that will compliment your wage.
You are very correct in the area of prioritizing our needs in relative to our income because it will enable you to curb some unnecessary expenditures that you can do without.

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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?

anyway sometimes people do not have a choice because maybe they have a family that they have to sustain so either way they still need to spend more than they own which is why they tend to look for another source of income

you counter argued your own questions

alot of people on low income and living within their means(spending less than income), dont consider themselves financially stable..
these same people then rely on credit cards to sustain their life and thus think they are then stabilising their life with debt/overspending

many people on low income need to not just spend less than income but try to find opportunity to increase income to be truly financially stable

STT

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It used to be the backing for money was savings so yes its not just people but arguably the entire country that have to not spend all money today in order to invest for tomorrow. We can think of the origins of the agrarian economy in that the harvest from autumn should never be used up all at once but is vital to sustain both people and cattle through a winter.

If we fail to do that basic task of saving the summer productivity then we fall into the hands of others who will provide through the winter but at a cost, that extra cost is what will keep a person poor their entire lives.

The government is quite happy for you to only be a simple poor worker from childhood to old age, you are just a labor commodity but also you must blame yourself at least half for that failure.

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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

Life is all about management, and you have to cut your coats according to your size, if you are earning a salary and you know quite well that the economic situation of the environment or country you find yourself is bad, I don't think that buying things above your salary is the best option or taking things on a credit will help you, theirs things that you needs to do to suit your monthly earn with you the situation you find yourself, I think that the best thing to do, is minimize your intakes of expenses and ensure that you have amends your living life styles with the present condition of the country economy.

AVE5

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The thing is that the more your income increases is the more expenses increases too but what shouldn't be undermined is not striving to increase our portfolios to maximize our incomes and also, looking back to our bankrolls to see if we're growing or just stable.
When the income is not increasing, we should of course spend to the standard to what we earns so the we can make savings to invest on other means of increasing our portfolios.
So keeping a financial stability involves financial literacies of discovering new incoming opportunities and keeping aware of the economy level towards reciprocation of not living about your limits but saving more against the future conciously as not sure of the future economy policies that may lead to inflations and a hard time of financial flows.

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