This is a very important piece of advice you should give yourself. It’s easy to think of income-loss models as a guide for making decisions. People think about the amount of money they spend, the amount of money they can earn, the amount of money they can use to manage their finances, the amount of money they can spend on their kids, and so on. But this is really the most important thing to remember.
Think of income expenditure models as being similar to a financial planner. You need to think about your spending habits, your income, your investments, your debt, and so on. The only difference is that instead of saying, “I spend $5 a month on groceries,” you say, “I spent $5 a month on groceries.
You can’t just go by how many you spend and say that it means that you’re in trouble. You need to factor in how much you spend each month, each week, each day, what your spending habits are, how much money you make, and how much you have.
An example of this would be someone who makes $100,000 a year and spends $10,000 on groceries. If they spend two months a year on the same groceries, their monthly expenditure is $2,000. If they spend three months on the same groceries, their monthly expenditure is $3,000. If they spend four months on the same groceries, their monthly expenditure is $4,000.
If you spend 25,000 on a single car, you’re going to spend an entire month on another one. In a world where the average person spends more time doing the same things than the average person, you’re going to spend 20,000 on a single car and you’re going to spend 50,000 on the same car. It’s going to be an average of what you spend on a single car per week.
As a general rule, income is more important than any other measure of work performance. You are more likely to spend the time you earn in a day than you are in a week, and as a general rule, you can spend the time you earn in a day more than the days you spend in a week.
When we go online and start using the tools and stuff out there to create our own time management tools we end up spending most of our time making ourselves a lot less productive than working out on our own. If we don’t start using our time wisely, we end up spending more time on the same task than the same amount of money. That’s why it’s so hard to build a money management strategy.
For a whole year we’ve been in the business of taking care of people, but sometimes they are too busy trying to figure out how to get their money. For example, when we were going to be going to a party and we were busy taking care of a couple of people and they were doing some really dirty work, we would get an email or two from a couple of people who were busy being clean and helping each other.
In the end though, it’s really not about the money you spend. It’s about the money you save or invest. The more money you have, the more it can be used for yourself, and the more you don’t have to worry about money.
So to be more specific, I think the problem with most income expenditure models is that they are based on the idea that you have to spend money to make money. The problem with that is that most people spend money and then get nothing in return. We all know we have to be saving money and saving it somewhere, but it’s not like we get our money back from that.