We have so many problems in our lives and one of the biggest problem is that we are spending more than we earn. It is easy to spend more than we earn. There are too many things that we buy that are unnecessary. We are also not saving enough money for our future. We don’t save for retirement and we are spending money that we shouldn’t. Our children are getting loans for education and they have to pay high interest rates. The only thing that we are doing for them is giving them money when they need it, which is not good. I suggest that we start saving and not spending so much money. You should start saving when you get a job. This will help you to have a steady income. You can also make more savings by setting aside money for emergencies.
There are many reasons why people spend more than they earn. One reason is that they don’t pay enough attention to their expenses. Sometimes, we don’t think of how much we spend on something until we have no money left to pay for it. Another reason is that people have too much debt. If someone has a lot of debt, it means that they are borrowing more money than they can afford. This makes their financial situation worse. Yet another reason why people are spending more than they earn is that they can’t save enough money. Many people don’t have a savings account or some other kind of account in which they deposit their money.
I have already written about it in my previous post but I am going to share more tips to make our life easier.
What is spending more than we earn?
If you want to understand the concept of spending more than we earn, then it is a situation when you spend more money than the income you have. This is the condition of an individual who has a good amount of money but still spends more than he earns.
How much money should I save for?
There are so many answers on this question but the most important thing is that you should save at least 25% of your income. If you don’t have that much money to save then you should save 10% of your income.
If you want to live a comfortable life, then you should save at least 20% of your income. So, if you earn $1000 per month, then you should save $200.
The amount that you are saving should be according to your needs, so if you want to save for your future then you need to save 25% of your income.
When will I be able to pay for my bills?
This is the most important question and if you don’t have a proper answer for this then you are not a grown up person.
You need to save at least 20% of your income to be able to pay for your monthly bills. When you are saving so much of your money, you will also be able to pay for your other expenses.
Conclusion:
Now you know how much money you need to save. You should also know that you will be able to pay for your bills and enjoy a comfortable life. The more you save, the better your life will be.
