Savings...

I just had lunch with one of my insurance agent (I have 2). She has been my agent and friend for 10 years. Amazing how time has past... I was just a freshie then and now... sigh...

Anyway... she shared with me something which she has learnt from a seminar recently. Actually, this is something which everyone knows but just never sunk into our thick head, so to speak... =D

1st Equation : Salary - Expenses = Savings

2nd Equation : Salary - Savings = Expenses

Uh huh... my mom has always said to my siblings and I... we have to live within our means and not out of our means. The 2nd equation depicts that putting aside a portion of our salary for our "Savings" is a conscious choice which each of us has to make... and thereafter, we spend within our means.

So, which is your equation?

As for me, I am changing my mindset to fit the 2nd equation...