Prudence in Spending

PRUDENCE IN SPENDING Earning is difficult, but spending wisely is even harder. A person who knows how to spend properly can live a higher standard of life even on a modest income. By contrast, someone who does not know how to spend correctly will face financial problems even with a large income. In truth, a person who spends with prudence and economy has found the secret of increasing his income without actually earning more. He has, in effect, added to his income without making any extra money. Think before you spend, just as you think before you earn. Do everything in a planned way, and you will never fall into financial hardship. Wasteful spending is simply another name for poverty, while thrift is another name for prosperity. Two examples illustrate this fact. I know of one man who, after completing his MSc, got a job with a salary of 400 rupees a month. He decided to treat only 200 rupees as his actual income and deposit the remaining 200 in a savings account. As his salary increased—to 1,000, then 2,000, 3,000, 4,000, and eventually 5,000 rupees—he always treated only half as his spending income, saving the rest each month in the bank. After living like this for ten years, he checked his account and found that a large sum had accumulated. He then left his job and started a business. Today, he has advanced considerably in that business. But he still follows the same