Post
Topic
Board Economics
Re: Spending less than your income is key to financial stability
by
Nothingtodo
on 12/02/2025, 22:24:47 UTC
It's not possible to spend more then you earn because if one spends more than he or she earns, it definitely means that the person also spends others money, maybe borrowed money and this will make the person be on a big depts. One can spend all the money they earn but can't spend more than what they earn. Economy is hard because of inflation, and one need to have more than one job so that he can take appropriate care of his expenses and also make some savings for future purpose.
If someone spends more than they need without making a budget that balances their income and expenses, their expenses will definitely exceed their income. It is obvious that if a person spends more than his income, he must have to spend money from outside sources. External sources usually mean borrowing money or taking out a loan with interest. If someone spends too much on a loan, they will definitely face danger in the future.