Success and financial stability does not depend on how much a person earns but on how much he can keep.
Successful people are those who have the ability to save money. In this article we want to highlight some of the rules of Spending which will enable readers to attain financial stability.
Rule 1. Do not spend more than your income: Spending more than ones income leads to bankruptcy. Bankruptcy is a situation whereby one indebtedness is more than his assets. The major cause of this situation is spending more than your income. Perhaps you do not know what bankruptcy law says in this country. It is very bad to be bankrupt. Remember investments are made from saved income, so no savings no income.
Rule 2. Never spend in anticipation of income: It is not proper to spend money in anticipation of income. Many civil servants spend money on food, clothing and other wares with the expectation of making payment when salaries come. This situation is very dicey, especially these days that salaries do not come as expected. Always follow the rules of spending with what you have at hand unless when life is threatened. Remember the adage “cut your coat according to your size”
Rule 3. Always make a budget: A budget is a written plan showing expected income and expenditure. Wise people prepare budgets as a guide to expenditure. If you follow your budget, you may not spend what you have not earned and you will always be at peace.
Rule 4. Do spend money to impress others: A lot of people spend money to impress others. They splash money in ceremonies just to impress their viewers. This is a dangerous habit, we must always consider our income first before we engage in spending spree. Because if you don’t have money, you will realize that the poor man does not really have a friend.
Rule 5. Don’t be afraid to spend: What we have said so far may be misunderstood by some people as becoming stingy, stingy people hardly get rich. Modest people at least remain financially stable. If you are afraid to spend, you make money your master but if you spend carefully, your money remains your servant.
If you want to thrive, don’t neglect these 5 rules of spending.