How saving and spending are related to each other

spend saveSpending and saving are related to each other in your budget. When you spend more, you save less. Obvious you might say. Yet, not so obvious is that your spending sets your standard of living … and saving is how you sustain that standard of living when the income stops someday (called retirement).

By saving a bit more, you lower your present day standard of living by that same amount. That little difference today may mean a big difference tomorrow. And … the longer you wait, the more you need to cut spending in the future to make ends meet. Some just say “oh well” and assume they’ll continue to work their whole life.

Yet, many can’t continue to work as they assumed … either due to being laid off, or due to health. That is when the biggest spending cut comes home to roost!

Advice IQ article.

Original blog post that prompted this article … “Live within your means … what does that mean?”

About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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