Best Financial Formula
By wacky_ice
@wacky_ice (68)
Philippines
February 27, 2007 2:59am CST
I got this article from an Entrepreneur website.
Typical formula in saving money:
Income - Expenses = Savings
Most of us are following the typical formula in saving money. If you continue to save money through the traditional formula. You will be in the same situation after 5yrs..10yrs.. etc.
Now I will share to you a revised formula to improve your savings.
New Formula:
Income - Savings= Expenses
In this formula we are sure that we can save more money. You may save 10% to 20% of you income as savings then the rest can be your expenses.
For example your earning 300$/month. You may save 60$ every month in a year you can save 720$. You may deposit it to the bank to earn interest.
We also need discipline to ourselves. We need to save money in order to have a comfort zone. Always remember the formula
Income - Savings= Expenses. GoodLuck!
1 response
@Takuyar (114)
• Saudi Arabia
27 Feb 07
Nice spin on the idea, but you really need to have a permanent income for it to work by setting a amount of money aside for your savings.
This will really help though, I can't remember how many times I've gotten the urge to spend all the money I have on me. Using this method, I can just set aside around 70% of my income and leave the rest for monthly expenses! KUDOS for posting this!
@wacky_ice (68)
• Philippines
28 Feb 07
Yah a permanent income... Never the less its a good formula to follow... Saving 70% of to savings and 30% are all expenses? you must be rich or good high income... Good Luck!
