Control Your Expenditure
It is shocking how little remains after taking care of your expenses.
The idea of saving even one egg from your salary of ten eggs seems impossible. George Clason, the author of Richest Man in Babylon, knew people would face this challenge.
The problem is some saving purses will not get very fat. Everyone will not earn the same amount, and some will have more dependents than others. But George states one thing with certainty. Your expenses will increase in proportion to your income.
The sad truth is you will desire more than what you can afford. But we cannot have everything we want.
The first strategy against spending everything you earn is differentiating between expenses. Utilities like light and water are necessary. You may also buy the latest new products, but this is a non-essential expenditure.
Non-essential goods are easier to remove from budgets. Mandatory expenses are a bit more tricky. To reduce or get rid of essential spending takes conscious effort. George recommends a careful review of your life habits. Consider more energy-efficient actions such as turning off lights and more.
The purpose is to make sure your actions are in line with your budget. It is critical to control avoidable expenses. Control means you can have more money to split between utilities and desires. So your savings will grow.
What are you reading these days? We welcome you into our reading club. Join us in reading the Richest Man in Babylon.
This article is part of our Business Coaching blog series. At Dataczar we talk to a lot of small businesses. We’ve found a few books that we keep recommending time and again. To better help our customers, we’ve added a Reading List for Small Businesses to our website. We encourage every small business owner to read and keep these timeless business books on their office shelf.