Income and Wants

The relation between Income and Wants

There is inverse relation between Income and Wants, If you increase your wants - your income will decrease (You will not have enough money or savings from your income) and If you Decrease your wants - your Income will increase ( You will have more money in your hand or Savings).  It really does not matter how much money you are earning monthly or yearly but if your wants / expenditure is exceeding your income limit, you will not be able to see enough income / savings at the end of the day/month/year.

Let's take an example to understand the difference between income and wants (expenditure).  If you have monthly income of RS. 5000 and your wants (expenditure) is about RS. 4000 (Wants in the form of money), Now here your remaining balance / income is 1000 (5000-4000). But if your income is increase form 5000 to RS. 9000 and your Wants increase from 4000 to 10000, In this situation you will not be able to save money but inversely there will be negative saving which is -1000. 

My Personal Opinion - 

Most of middle class people could not save too much money or sometimes they don't have remaining balance to save money, maybe there are several reasons for their negative savings like education, bad habits, unnecessary spending, etc. 

But once they realise that - The problem is not about income it's all about your wants or expenditure or spending money in proper way. 

It dose not matter how much income you have, But if you able to minimise your wants / expenditure / stop unnecessary expenditure then you will be able to save money from your income.

Hope you will reduce your unnecessary wants / expenditure. There are many things - without those things we can live our lives, so why spend too much money on those things, it's better to save or use that money for investment or some other useful or important work.  

Thanks For Reading ( Have A Great Day :)

“You can have a Masters degree in making money, but you will still wind up broke if you have a PhD in spending it.”
― Orrin Woodward