why increasing income is not the best way to increase saving?

Based on my own experience and interactions with many people, every time people want to have more saving, they are trying to increase their income or trying to come up with an idea of a side income.

While it’s not wrong, it’s just simply tough.

Let’s start with a very basic equation:

SAVING = income – EXPENSES

As usual, a graph helps us to visualize the issue:

This picture shows that there are toooooo many ways and tooooo easy  for us to spend money while it is so tough to add/increase income.

But the danger for human (especially for me) is it is easy to write but soooo difficult to do……

notes: i posted before how to select which post to be reduced (versus just cut everything)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: