Spend Less than you earn

Step 1 for Blue Print to Financial Freedom – Spend less than you earn.

Human beings are creatures of never ending desires. They continuously crave new experiences for themselves as well as their families and in trying to fulfil their desires continuously chase goods. In this chase they often get misled, over spend and get into debt.

Once a man gets into the debt trap-for instance a credit card loan-he tries to repay the loan by earning more and pay it back and get out. In order to earn more he devotes time and energy on his job. His income increases but his family time decreases. He starts feeling guilty about it andtries to compensate by buying more things for his family. The spending outgrows the income. He spends still more time on his job and now his health suffers. To get back his lost health he spends still more.

And thus the story continues.

The only solution to come out of this rat race is to spend less. Spend on value. And spend less than you earn.

Story 1:

In the small town of West Bengal there lived a wealthy man with his two sons. Both the sons were working in similar jobs and had similar incomes, when the younger one decided to opt for a city life and left for metropolitan Kolkata. Once in Kolkata, the younger son worked diligently and made a successful career. His earnings grew. He also opted for a high life style. Clubbing and dining out wasnormal. Going to the very high end schools for his children was a must. The spendings grew apace.

Meanwhile, the elder, stay at home , both led a quieter life. His spendings also grew with time but a good part of his expenditure was on gold, real estate and the like. He educated his children in good but normal schools.

Time passed.

The children of both the brothers grew up and started on their career paths. Both the cousins had the same dream of owning and running their own businesses and worked towards it.

More time passed.

The son of the elder brother now owns a huge factory, a good part of the capital coming out of his father’s investments. The son of the younger brother is still working at a job.

Story ends… learning continues.

Research shows that those who spend less are comparatively less stressed, less vulnerable and have better work/life balance.

Final call to action is

1) Earning-saving = spending which means saving first for self

2) Earning>spending. There should be space for saving