Earn More, Spend Less: Part 2

One secret to personal financial wealth creation and liberation from indebtedness is to Earn more and Spend less. This assertion brings one to the all important and crucial need for a proper and accurate documentation of the average spending/ expenditure and earnings/income per month.

Continuing from our previous discussion on this same issue and topic, BUDGETING is a must, however you want to look at it.

Budgeting has its inherent benefit in the sense that it readily and immediately gives you an overview of how your available earnings/funds/money/take home pay is being spent/ disbursed. You get the opportunity to track your spendings.

Included under your spendings are items such as utility bills, mortgage payments, house/apartment rent, fuel/gas bills for cars, auto insurance, groceries, dry cleaning, entertainment, internet and satellite/cable tv connection service, credit card payments, new clothing, tuition or education/college bills, costly repairs...to mention a few.

In your quest to Earn More and Spend less, you must be in the know on how your resources/money is being spent by you. As a result, you must draw up a list of your spendings which is the same as Budgeting. This affords you an opportunity to reflect on those 'frivolous' items which at a second glance were not afterall necessary. Seeing doing or going without them would probably have made no significant impact or had any meaningful impact/change to your livestyle and general well-being.

Budgetting allows you the chance to have a general overview and paints a true picture of how financially independent you are without having cause to consider applying for a loan or cash advance in the event you get to manage your earnings/income/take home pay well.

This brings to light two pertinent issues- One, budgetting allows you to know and realise whether you are living above your means/ income level. To continue in this way leaves little room (if at all) to stay out of debt and financial crisis.

Two, budgeting allows you to give a second thought to how best you can cope with the situation before you to bring it under control and within means (where your expenses/spending/expenditure exceeds your income/earnings/take home pay). you need to become firm in the area of handling and utilising your finances in a judicious manner whatever the need, want, demand or occasion.

The two options out of this situation being to either find alternative ways to cut/reduce your spending thus allowing your account(income versus spending) to even and balance out, or to source for other means or ways to increase your earnings/ income in order to overwrite the deficit your spending level has introduced to your budget (low earnings/income versus high spending/expenditure0.

This takes us back to our topic and title Earn More, Spend Less which is a Win-win situation provided you are ready to make adjustments where necessary from the statisics before you of your earnings(income) versus your spending(expenditure).