If you are always having money issues, here’s something you already know… but worth reminding.
There’s something that is flawed with the equation
Salary – Expenses = Savings.
If your Salary is $2000, you will spend until $2000 gone, and your savings $0.
Even if your salary goes up to $3000… you will “magically” end up with savings $0.
It’s just human nature to spend whatever we have.
We always have a justification why the new phone is a NEED.
Why that extra vacation is a NECCESSITY.
But when you start flipping the equation.
Salary – Savings = Expenses
Every month when you get the $3000, auto channel $1000 (via online banking) into your savings account and NEVER touch it. Your expenses will be fixed at $2000.
Now you can finally build wealth, your backup cash when the next crisis comes.
Many of you already know this, but it’s still worth reminding my Friends who are forever having issues with their finances.
Now, go pay yourself first.
Don’t pay Apple, Chan Brothers, and not even NTUC first.