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We often like to joke " A low salary is not enough, but when we got higher salary it is still not enough! " What's the real problem?
When the salary is low we know how to be frugal and dare not to spend on modern equipment and unnecessary staff. And when we got a raise of income we start to change our spending habits and the situation doesn't change we still spend all the money despite having a huge income raise. That's call " Life Style Inflation "
How could we better manage with our spending?
Making a spending list
When planning your income and expenses, you will be able to afford monthly, weekly and daily expenses, as well as prepare an investment plan or save for another purpose. No matter how much your income increases, you will still be able to maintain your spending habits remain at the same level and stick to your plan. Spending on a plan can speed up your quest for Financial Freedom as fast and efficient to help ensure you have enough reserves fund.
Knowing what is needed not wanted
The increase of income does not change the needed as much but it increases our desire to want more. We should calculate well and be careful of the desire to spend as the income increases. We should first stick to what is needed and increase just a bit of wanted things.
Understand The Lifestyle We Enjoy with the Budget we have
Today's society is full of showy, luxurious, modern creation, and therefore we are prone to greed. Get lost in the, try to keep up with them. But these thing isn't necessary make us having a better life than our mind does.
We all have dreams to achieve write them down enjoy the process of getting it. Having everything doesn't mean to make us the happiest person but we could find it bored keeping us wanting more and forget to enjoy what we have.
