Young earners spend more than they save. In many circumstances they even end up spending more than they really earn!!! In times like this when access to plastic money and easy financing options are available one is spoilt for choices.
The need is to distinguish their wants from their needs. Sadly how many of us really do that is a matter of concern. They may need to save for their retirement- sunset days but the new gadget available online comes in the way!!!
It has been observed that people tend to overspend if they use a credit card. It’s not that I have anything against usage of such cards but then you have to exercise discretion and no matter what don’t spend mindlessly. This should be avoided at all costs. Use cash instead if you can’t suppress your spendthrift nature. Many young people are not able to save enough because they don’t have anything left after all their expenses.
Mathematically, Income – Expenses = Savings.
Lets work on changing this equation to Income – Savings = Expenses….
So think on this little aspect may be next time when you over splurge you might give it a thought. After all every one wants a comfortable retirement life.
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