Despite having innumerable resources and the best advice from the richest lads, people end up spending more than they earn. And this is why these people turn broke very soon. Well, spending money is not an issue at all, but yes, saving money and investing it is a far better option for people of any age.
So what is the amount you should earn and what should you spend?
Well, earning money is definitely not in the hands of a human being. If it happened according to the wishes of people, they would have wished to earn all the riches in the universe in just a second. However, it definitely does not happen this way and you can earn only according to your talent or according to your fortunes.
However, you can definitely control your spending and make sure that you save enough money which would come in handy when you are in need. But what is the amount of money you should save?
Well, try to save at least half the money you earn and this is not a joke. You may think that you do not earn so much and that saving even one-fourth of your earnings is something difficult. But for a month, take a pen and paper and write down a few things. Write down the amount of money you had in your bank account on the last day of a month, the money credited to your account in the subsequent month, the money you spent in the month, the bills you paid, and the money that you finally have in your account on the last day of the month.
Compare the difference between the last month’s bank balance and the balance in the subsequent month. Look at your expenses. Did you spend something that you did not intend? Did you spend more on eating outside, when you could have done well by eating at home? Look at the bills. Look at the medicines you bought in the month. If you are having some kind of medication on a daily basis without any genetic issues, this is an extra expense.
If you are eating out too frequently just because you do not like to cook, this is an extra expense. If you are spending money on smoking and drinking, this is the money that can be saved completely. But then, you need to have that urge to save money. You can literally spend all your money in a second and it takes years to save it. Do you agree?