income, savings, expenses

an employee with small salary will use this formula : income - expense = saving, or even income + dept = expense an employee or an employer with high earning will use the opposite formula: income - saving = expense, or even income - investment - saving = expense a wise employee regardless their earning should use your formula: income - saving = expense because our expense, our 'need' is unlimited. if it's allowed, we will buy everything sold under the sun LOL. so we have to control our expense as wise as possible. and the only way is allotting a certain part of our income in saving.

It should be Income-Savings=Expense, but in true sense most of the time it does not happen. In my case, how can I save if the expenses is higher than the income. I believe it is just a matter of discipline to save. For me I really determined this time to pay all my debt and face the new year 2009 with debt free and start saving. We need to save every time we receive money, because of the economic global situation. We do not know when we have jobs, or when we are lay off from jobs. We need to prepare for rainy days.

Though, Income - Savings = Expense, may sound abit too little spend, but for anybody who is wise enough to realise, it's actually more than enough.. lol =D And that one can just freely go ahead and spend since they have already set aside their savings.. And if they are not able to spend all this month, at least they can bring forward to next month to boost their spending power, or maybe they can choose to add on to their savings too ^_^ As for Income - Expenses = Savings, the savings will never come.. Because once we get the money to spend, who will ever wanna save it when they can be out spending more.. lol =D ANd more than often, they will come up with many excuses for their extra expenses.. haha

I usually go with your second example. I always figure out how much income I will have and take the expenses out, then I know how much I have left. the way things are now, my savings usually end up in a negative number. At the moment my expenses are much more than my income. I was laid off from my job almost four months ago, so the income is rather sad.