Spending less than your income is key to financial stability

[Nalain420]

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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.

There should be increase income if we want strength of economy and we have to take many steps for that because we have to change our income by getting more skills. In the World, there are very less skillful people and every country need skillful person to give support and strength to the economy but that is up on youngesters because they can take steps for that. If you have only one skill then you cannot control your statement because there will be more charges than your income and you have to pay more taxes in your bills . There are thousands of people who are who are jobless because they have no skill but they have useless degrees which have no demand in the market.

[Oluwa-btc]

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

Even with the current state of the economy we still need to cut down on our spendings and restrategise on how to spend even the least income to avoid financial instability. Nothing is enough until we must have gotten to the targeted income we planned for which can be gotten from different dimensions, so we need to prioritize multiple income channels inorder to maximize inflow of money.

[MiF]

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 less than what we earn is always a good strategy but it cannot make us rich, when i work and payed with minimum salary i do spending less what I've earn but still im in a very hard status with regards to the financial status,so for me better try to invest or trade and earn not just saving or spending less that what we earn alone.

[Alone055]

Spending less than what we earn is always a good strategy but it cannot make us rich, when i work and payed with minimum salary i do spending less what I've earn but still im in a very hard status with regards to the financial status,so for me better try to invest or trade and earn not just saving or spending less that what we earn alone.

Financial stability is not specifically about being rich; it's mostly about a financial system fulfilling its basic roles. For example, if an individual is able to fulfil all the basic requirements of their life, such as monthly expenses, bills, and every other thing that falls under the basic category, which involves finances. If I say that I'm financially stable, it doesn't imply that I'm rich or I'm living a luxurious life, but it simply means that the basic financial needs of my life are fulfilled, and I face no problems with that.

The term you are referring to is financial independence. If an individual has enough resources to be able to maintain their lifestyle without having to depend on an active source of income, they are financially independent. This means that you are not poor, you might not be too rich, but you at least have enough money to face no financial crisis even if you don't have a source of income in the present.

[jaberwock]

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.

I think it is impossible for our expenses to exceed from our income and if ever it is possible then maybe we are on a very low-paying job but it is better to quit on them and find something better. I am sure that we can do that if we will only keep on looking and trying our best like in the job examinations, interview, training, etc... As long as our expenses doesn't exceed from our income then we may not fall in a debt. There are indeed unexpected and sudden expenses but that is why savings are invented, so that we can have something to use for them. Apart from it, there are also investing and other forms of earning an extra income.

[tottong]

I think it is impossible for our expenses to exceed from our income and if ever it is possible then maybe we are on a very low-paying job but it is better to quit on them and find something better. I am sure that we can do that if we will only keep on looking and trying our best like in the job examinations, interview, training, etc... As long as our expenses doesn't exceed from our income then we may not fall in a debt. There are indeed unexpected and sudden expenses but that is why savings are invented, so that we can have something to use for them. Apart from it, there are also investing and other forms of earning an extra income.

It is not impossible and it does happen to some people today because they are indeed pursuing a life full of luxury and some even take loans to fulfill their lifestyle.
This is a wrong lifestyle although there are some people who continue and I think this is one form of no life management to manage expenses and income.
If people can manage expenses not to exceed income then I am sure they will never get financial problems, even though their life is not luxurious like most people.

Living conditions like this are much better and they can avoid unproductive loans so that performance in living life will be much easier to apply to the investment sector or smaller-based businesses to increase income.

[barisbilgili]

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 less than what we earn is always a good strategy but it cannot make us rich, when i work and payed with minimum salary i do spending less what I've earn but still im in a very hard status with regards to the financial status,so for me better try to invest or trade and earn not just saving or spending less that what we earn alone.

Indeed, spending less than our income is the right choice but it cannot be done by those who cannot manage their finances well because when they see something they certainly want to have it even though it is not needed, choosing to invest some of the income we have will certainly be very good because we will be able to make a profit from the investment but we also have to manage all the needs we need first before we can invest from the remaining salary we have.

[Tbillion]

Actually it’s seems to be a good ideal for spending less than your income. But never the less it’s very impossible bcs bills are un certain. Especially in an economy that is not stable.

[bitzizzix]

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 less than what we earn is always a good strategy but it cannot make us rich, when i work and payed with minimum salary i do spending less what I've earn but still im in a very hard status with regards to the financial status,so for me better try to invest or trade and earn not just saving or spending less that what we earn alone.

Indeed, spending less than our income is the right choice but it cannot be done by those who cannot manage their finances well because when they see something they certainly want to have it even though it is not needed, choosing to invest some of the income we have will certainly be very good because we will be able to make a profit from the investment but we also have to manage all the needs we need first before we can invest from the remaining salary we have.

Yes, this is a common problem that occurs in every person who works. Indeed, this method is easy or can be done consistently but there will still be unexpected waste and it is difficult to eliminate. And the best way is to do good and strict financial management with a little change by spending a little money to stabilize finances or for good purposes such as investing, and this is also very necessary emergency funds even in small amounts that are allocated in case something unexpected happens or anticipate when you can't hold something to have it.

And the way to spend a little money or hamat is a good choice especially if we have goals such as investing, doing business or others that can help the money collected to grow more and not to be saved.

[Ndabagi01]

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

When you plan your life well and spend within your limits, you don’t need to panic to be a debtor because that very impossible and cannot happen. Those that fall mostly into debts are those that are looking to spend lavishly while exceeding their monthly or weekly expenses which is suppose to be accurate as that of your own income.

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

When you have a family to sustain, that does not be a reason to make you spend anyway you like, you need to understand that fact that you can’t be in debts and have a smooth family affair running, it’ll soon crash and will affect your main work. Everything about life is a gradual process and when you don’t follow it calmly and want to spend above your means, you’ll only suffer great losses.

[bakasabo]

Indeed, spending less than our income is the right choice but it cannot be done by those who cannot manage their finances well because when they see something they certainly want to have it even though it is not needed, choosing to invest some of the income we have will certainly be very good because we will be able to make a profit from the investment but we also have to manage all the needs we need first before we can invest from the remaining salary we have.

You know, it is easy to follow OP advice when you have a good salary. If you earn just a little bit above average cost of living in your country, even if you manage to save 5-10% of your salary, that is still nothing and not even close to financial stability. If cost of living is $1k, you earn $1.1 and spend $1.05, those $50 not going to change anything. I am sure that those who earn not much, will find it hard to save and economize all the time to keep income>expenses. A person can be used to everything, but living and saving all the time just to fit that imaginary "financial stability", that is not a life.

[Hatchy]

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

Sometimes even before some people receive their income, they might have already spent it. Everyone has one thing to the other that's personal for them to fix with money and we just can't expect them to let their money sit in their accounts while the problems remain unsolved. The only thing I know very well is that most people try to live a life style that's not of their standard. They over spend, while trying to impress others. That's actually wrong. Don't try to make someone see you for whom your aren't, be your own self.

[milewilda]

Indeed, spending less than our income is the right choice but it cannot be done by those who cannot manage their finances well because when they see something they certainly want to have it even though it is not needed, choosing to invest some of the income we have will certainly be very good because we will be able to make a profit from the investment but we also have to manage all the needs we need first before we can invest from the remaining salary we have.

You know, it is easy to follow OP advice when you have a good salary. If you earn just a little bit above average cost of living in your country, even if you manage to save 5-10% of your salary, that is still nothing and not even close to financial stability. If cost of living is $1k, you earn $1.1 and spend $1.05, those $50 not going to change anything. I am sure that those who earn not much, will find it hard to save and economize all the time to keep income>expenses. A person can be used to everything, but living and saving all the time just to fit that imaginary "financial stability", that is not a life.

There's always that fine line in between into those people who are financially capable and to those who are just that earning sufficient on which we know that on the time that they will be deciding on having some savings then it will be that understandable that to those people who do have more money will be having that bigger space or chance that they can save up, but actually it will really be basing up on someones behavior because we do know that not all people will be thinking up on saving up specially that they do know that they do have the money that they can spend on. In compared to those who are that earning up less or in average, then they are the ones will be serious on saving up even if its really just that in low percentage but at least they are really that thriving on someone because they do have those plans. Yes, it might be that way too lower but at least they do really know on what they are really that doing or they do have the idea on what they are that into. Spending less than with your income then its recommended because you do really know at least on what you are doing because you are lacking that financial capacity on which this is indeed a must. Financial stability will matter only if you do have that multiple source of income.

[Felicity_Tide]

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.

I think it is impossible for our expenses to exceed from our income and if ever it is possible then maybe we are on a very low-paying job but it is better to quit on them and find something better. I am sure that we can do that if we will only keep on looking and trying our best like in the job examinations, interview, training, etc... As long as our expenses doesn't exceed from our income then we may not fall in a debt. There are indeed unexpected and sudden expenses but that is why savings are invented, so that we can have something to use for them. Apart from it, there are also investing and other forms of earning an extra income.

The situation looks different for everyone. We have people that earns a decent amount(not too good, and not too bad), which is definitely an opportunity to invest, no matter the amount. There are others on the other hand that receives penny(very little amount), and you start wondering how they will feed, buy the necessary things, and also invest. The crazy part of it is that the government and the economy isn't making things any better. No matter the amount you've, you will still not be able to do much due to inflation and devaluation of currencies in different countries.

In as much as spending less than your income is very important and it is a good advice, i will prefer to advice people to work and earn more. There are some countries where citizens receives less than $20 as salary in a month, don't you think it is advisable for that person  to get involve in other sources of income, rather than trying to spend less and manage $20?. If anyone wants to live a decent life(not too good, not too bad), then it is either he/she gets a very good source of income, or multiple sources. And we shouldn't underestimate the benefits of self employment, rather than salary jobs.

[Churchillvv]

Of course having to spend less than what you earn is very important infact might be once of the most important thing guys have to do in their lifes especially when they are facing inflation around the globe but I prefer that guys should live below their worth in other to be able to make expenses that would be able to fit in to their current economic situations.

Some people live above their worth and in the process they seems to loss themselves into depts that live with them even to death, it's very difficult to escape the circle that we are put into but making it fair enough to live financially free one will have to learn how to subject themselves into some kind of stress according to our world today to live a better life in the nearest future. perhaps maybe 1 or 2 years of living below your worth can help discipline one and bring out the best in them to have much more than they ever did and financial freedom is easily attained into this scenarios.

[Mr.sprin]

Sometimes even before some people receive their income, they might have already spent it. Everyone has one thing to the other that's personal for them to fix with money and we just can't expect them to let their money sit in their accounts while the problems remain unsolved. The only thing I know very well is that most people try to live a life style that's not of their standard. They over spend, while trying to impress others. That's actually wrong. Don't try to make someone see you for whom your aren't, be your own self.

Yes bro, I agree with your opinion, we don't need fashion just to show luxury to other people, don't be proud of other people, it's better to live as we are as long as we have enough, don't go into debt to show luxury to other people so All of this can destroy us, don't hide poverty just to show we are rich, it's better if we live barely enough but we are free from debt.

[Callido]

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 less than what we earn is always a good strategy but it cannot make us rich, when i work and payed with minimum salary i do spending less what I've earn but still im in a very hard status with regards to the financial status,so for me better try to invest or trade and earn not just saving or spending less that what we earn alone.

Indeed, spending less than our income is the right choice but it cannot be done by those who cannot manage their finances well because when they see something they certainly want to have it even though it is not needed, choosing to invest some of the income we have will certainly be very good because we will be able to make a profit from the investment but we also have to manage all the needs we need first before we can invest from the remaining salary we have.

Investing and making good use of money is only done when there is good flow of money coming in, for every individual the standard money required for sustenance to appropriately fend for the needs shouldn't be less than minimum wage but agree with me that there are lot of people who are under paid, this can't be possible to live on, no matter how manageable the individual might try to limit his spending's it can never be satisfactory.

OP made a good advise, but for only those who are earning enough and just have their money resting in accounts, if i were to be such a person with a much decent pay then my priorities will be set to investing more and then having funds to go relax and enjoy myself, not necessarily squandering but having a good time.

[Synchronice]

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

You can't be financially stable if your monthly payment is lower than what you want to buy every month. First of all, if you work on a minimum salary, it will be hard for you to save money for anything because almost all of your salary will go into rent, food and transport. Second of all, you can't achieve financial stability if you either don't have your business or aren't a master of something specific like master in web development, tech security, electricity, engineering, dentistry and so on. If you have a profession and you are very highly qualified professional, then be assured that you have achieved a financial stability.

[Mahanton]

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

You can't be financially stable if your monthly payment is lower than what you want to buy every month. First of all, if you work on a minimum salary, it will be hard for you to save money for anything because almost all of your salary will go into rent, food and transport. Second of all, you can't achieve financial stability if you either don't have your business or aren't a master of something specific like master in web development, tech security, electricity, engineering, dentistry and so on. If you have a profession and you are very highly qualified professional, then be assured that you have achieved a financial stability.

If you are really just that earning only that good for your daily expenses and needs then it will be that hard for you to make have such savings that you will be able to set aside. It is really that easy to say or advise for someone who do have that capacity but for those who are living on which they are really just that on the borderline then its really that impossible on this aspect. This is why its really that important that you do really know on finding up other ways that you can be able to save up at least because if you are really that wanting to have that progress into your life then its normal that you do need to take up such step if you do make out such changes. Financial stability will really be that only pertaining on having that multiple sources on which you wont be having any problem on buying up something or having that emergency funds whenever unexpected things do happen. This is why you should be that thinking about other ways or methods so that at least you do have that kind of possible opportunities that you can be able to change up your life.

[tygeade]

If you are really just that earning only that good for your daily expenses and needs then it will be that hard for you to make have such savings that you will be able to set aside. It is really that easy to say or advise for someone who do have that capacity but for those who are living on which they are really just that on the borderline then its really that impossible on this aspect. This is why its really that important that you do really know on finding up other ways that you can be able to save up at least because if you are really that wanting to have that progress into your life then its normal that you do need to take up such step if you do make out such changes. Financial stability will really be that only pertaining on having that multiple sources on which you wont be having any problem on buying up something or having that emergency funds whenever unexpected things do happen. This is why you should be that thinking about other ways or methods so that at least you do have that kind of possible opportunities that you can be able to change up your life.

I mean it's normal that people are in debt these days, not many people are making that much profit and we are not really earning much. Ever since 2020 covid times, things have been terrible and none of us are making the same living. If I wanted to live the same life that I lived in 2019, I would be in 10x debt, so I am living much worse, literally living on peanuts, just to pay my debts already, I do not know how much costs I can cut, it's nearly impossible to do that without hurting myself further.

So all in all, I am sure that people who say "just save" are people who make enough to be able to say and not realize what kind of life we are living in. I believe those people are lucky that they do not live in our world.