The 2 Best Things about Spending Less Than You Earn

Spending less than you earn is not so easy to do but when you do it and it is a reality in your financial life these are 2 really awesome benefits

  1. You will stay out of debt

Debt can be so burdensome that you feel like you are in prison and have no control of your life. So if you spend more than you earn it means that you are slowly building the walls around you that will entrap you. Spending less than you earn is always the best option because it will help you avoid debt.

If you are already in debt spending less than you earn frees up the money you need to make payments on your existing debt. Over time, the debts will disappear, reducing your monthly bills and giving you even more breathing room.

Spend less than you earn and avoid borrowing because debt will creep up and before you know it you are in a vicious and helpless cycle every month end.

  1. You will have a cash reserve

It is always a good thing to have some cash in reserve because life happens and when something does happen you will be ready for it. Or half way there with the cash you have in reserve. If you have the discipline to stick on this path of spending less than you earn every month or every time you get money you will build up a cash reserve.

If you start spending less than you earn and you begin to have some money in reserve it may be time to start focusing on managing this money. You can start by putting the money you have left over into an envelope and keeping it out of sight and out of your hands. Before you know it you will have filled that envelop with enough money to walk into a bank and open a savings account or to join a savings group or club.

An Added Bonus: Knowing that you have fewer debts, you have some cash in reserve reduces your stress level. You sleep better, your overall health improves, and you feel happier about life. You are able to entertain thoughts that were closed to you before like starting a business or putting the money in a high interest term deposit account.

And you can give and help someone else achieve their dream.



A Zambian site sharing quick read articles around work, money and adulting life with selective interviews and quotes.
The founder, editor and lead writer who left university with a good grasp of public administration, economics, money, banking and international relations is also qualified in journalism and creative writing. She has been published in Drum and The BBC Focus on Africa Magazine and has been featured in several local and international publications.
An avid bird watcher with an extraordinary fondness for chikanda ( a Zambian delicatessen that vegans and non-vegans world-wide are putting on their bucket list ) she often tweets in poetry and short prose @kwachalelo