How come your expenses is way higher than your income? This is a big question a lot of people find embarrassing when asked.

Most often, we have so much demand on our daily lives and the things we need to get by grows exponentially that we strive to meet them through various means such as working to earn some money, borrowing and sometimes even begging.

Then, the next question is: For how long will one live on these terms? This is where finance management, spend control and budgeting comes in.

The ultimate rule for me is “Focus on what is most important and integral to your next income”.

I have always believed that if you want something so badly and you don’t have money, you will wait until you have the money. So, patiently spend.

My advise to anyone who wants to stay afloat with money will be:

  1. Save 15% always from what you earn whether it is convenient or not. You could do more really but for a starter.
  2. Invest 25% in something that gives you some residual income. When money works for you, a lot will work out for you.
  3. Spend only 30% of what you have and don’t cross the boundary. This covers your needs etc. Discipline is a strong syndrome for those who want to grow financially.
  4. Keep emergency funds of 10% and let it handle all matters of urgency.
  5. Whatever you do with the rest of the 20% should be routed to your “wisdom account” – everything you need to know to help you make more money. Knowledge is the base upon which wealth is created.

I personally feel, applying these rules will be the only reason why your expenses will never be more than your income.