Balance between Income and Expense

in LeoFinance2 months ago

For any individual, it is very important to have a proper balance between income and expenditure. At first, when we start earning and start to have a good income stream, it is not easy to manage the expense and bring a balance. But gradually when we know what is our income, it is also easier to plan the expenses as well. The focus may be more towards spending a lot when we first start earning. It is very common among all the first time earners. Then later when the long-term thoughts come to the mind, people think a little about savings as well. But still, there are people who spend their income then and there and don't care about saving for the future at all.

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I wouldn't say that not saving for the future is a bad thing at least for people who don't want passive income. But for people who need passive income and financial independence, I guess savings is very important. It is also mandatory that one should make sure the expenditure is not going beyond what they earn. That usually becomes a practice where if there is no control over the expense, people easily end up in debts.

Focus on debt is first

When it comes to financial management, focusing on debt is the most important thing. I would say that debt not only affects physically by preventing us from leading a life that we wish to live, but it also affects us mentally. For people like me, I cannot be very comfortable with having debt in hand. I usually make sure all my debts are cleared but otherwise, lending is not a problem for me.

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I currently have lots of debt in hand and this year had been one of the bad years where in the last 40 days I had to spend so much for multiple reasons. The expense is still not over and I guess it will continue for another week. In that case, I have to work a little bit hard to clear all my debts. Already I bought a big loan to cover my marriage expenses. Now I did recently did a top-up to it. I hope this situation doesn't come to me again and I wish I clear my debts soon.

Towards financial Independence

The focus is always towards financial independence. Who would not want financial independence? If we have proper control over the expense and income, I'm sure attaining financial independence is not a big deal. Income expense balance can trigger discipline to keep the expenses very minimal creating opportunities for savings as well. If we are wise enough to focus that towards investment and savings, I'm sure it is possible to attain financial independence at one point in time.

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I wouldn't say that it is always the case. Don't take me negative but there is a high possibility that expenses can go higher than income at times. But there again to keep it in control, it is always better to keep the expenses low compared to the income on normal days. That's what will give compensation to us when there an unfortunate situation where we end up doing a lot more expensive than savings.


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This is a very important topic and I think that children should learn about the income, expense, debt, and similar things in schools... As there are a lot of adults that have no idea how to deal with money and money issues...



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Yes, bring it from childhood is the best thing. Once they become an adult, they will be able to naturally pick it up. As you said, it is a little sad that even adults find it hard to create a balance between income and expense. Cheers! !BEER


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This is great information in how to handle your own finances.....I was blessed to have parents who taught me the importance of handling money the right way & how to budget.

Now, of course, I still made mistakes as I got older, but I can say I have no debt & trying to keep my budget balance without severe restriction. It's more about being conscious of where your money goes & not to overdo it. I really love the book Total Money Makeover by Dave Ramsey. It really helped me reset my thinking on handling money.

And I agree with @ph1102, they should teach this in schools so kids would have the right foundation going out in the world. It effects so many things. Thanks for this great post & keep up the awesome work :)

Yes, this should be thought of in school. I was also fortunate enough to learn this from my parents. The first initiation happened when they bought me a piggy bank. That is when I started doing my first savings. 🙂 Thanks for your comments !BEER !Cheers

Omg I remember my piggy bank :) It was an exciting thing at that age, too - my own personal bank hahah. Great memories :) Thanks for the beer! Always appreciated 💚

Yes having a piggy bank is so exciting especially at that age. That's why I also think that kids should never miss it. 🙂


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This is great advice on how to handle your budget

Thanks for your comments. 🙂

Thank you Bala @bala41288 for posting this. It took me a long time in life to learn this but glad that I did. I am happy to say that I am debt free and can focus on helping others to gain that same freedom. The more people that you can help to achieve financial freedom the greater your life will be.

Yes I agree with you. It is not only about us reaching financial independence. Helping others reach that is also a great thing. I was fortunate to know about savings in a very young age. Cheers!

I agree with @ph1102 I also think that children should be taught this. You've touched on some very important subjects. It's amazing how many people know NOTHING about setting a budget and working within it. I think it should be an entire series of posts! :D Great job

Thank you so much for the comments. This should indeed be brought from a very young age. Kids should be taught about savings. Parents can buy them a piggy bank. 🙂

Definitely something all parents should do. Although I guess that would mean the parents would have to know how first! haha

Ha ha ha that's true. Parents should know this first. 😀

Great topic. Yes, some don't save and get upset when they don't have. I know a lot of younger people these days spend their money quicker then they make never giving a thought about tomorrow.

Yes it is quite true that the younger generation have very less awareness about saving. As they get exposed to more spending in a very young age, it is hard to bring the savings nature in them. Thanks for the comments. 🙂

I go through my expenses every month to make sure things don't get out of hand. I have been in that boat more than once and it isn't any fun. Have to pay attention all of the time.

Yes quite true. When things get out of hand, it takes time again to bring back balance. Good to prevent than adjusting after it happens. Cheers!