Expenses will rise to meet income

No matter how much you earn, your expenses will always match up to it, how because of an
old habit of the humans to see pleasure today. To explain it let’s see the financial standing of
two different individuals one earning 15000 a year and second one earning 300000 a year
Let’s call them a mechanic and a doctor.
lets see the income and expense statement of a mechanic and then a doctor.









So you’ll see whenever both will be out of job or work, both lose everything, there is not much
difference between the two of you. Doesn’t matter what you earn in or the type of work, you
earn less you’ll send them to public schools you earn more you’ll send them to private school,
you earn less you’ll drive a normal car, you earn more you start driving a Mercedes but does
that matter? Some would say that ok, how can a doctor lose a job, well don’t be so sure, god
didn’t made a guarantee that the time would remain the same for you or him, that you would
not accidentally make a mistake in a patients healthcare which is not provable in court, or you
would not love your hand in an a accident, or you would not go mad or you would not get sick.
List is countless, depends on who you ask.
You become rich by
Saving what you earn,
Insuring what you save,
Investing what you insured.
Always understand what are you investing in. if you don’t explain it to yourself in two lines
you don’t understand and if you don’t understand don’t invest, you’ll lose.
When investing in something, ask yourself three questions what will he do of this money, how
will he earn, is he investing in speculative things, if he dies how would you recover your
principal, if he defaults, what physical thing does he has that you can take to compensate for
the loss of capital, is he earning from illegal or unethical things, investigate him as you would
do for your daughters husband, if you can’t answer even one question don’t invest.