Not enough income. How should I save money without hurting myself?

The formula "Income - Savings = Expenditures" is often talked about as a way to create financial discipline. The idea is to keep savings out first, and then live on the rest of the money.

Sounds simple. And seems to work for everyone?

But in reality, this formula does not suit all walks of life.

Especially with people whose income is not real enough.

Imagine a worker earning 15,000 baht a month.

Rent of room 5,000

Travel expenses 2,000

Food cost 4,000

The cost of medicine and other basic expenses is about 2,000.

Not including unexpected reasons. Almost all the money since the middle of the month.

He doesn't spend lavish money, but the revenue is just "surviving."

Primary expenditure is almost irreducible and there are no gaps to miss.

If you take the savings formula first and use it directly

For example, saving 10% is 1,500 baht.

What happened was

Food costs must be cut.

The bill must be deferred.

Or finally, have to recover to make that month pass.

The result is not discipline, but stress and a sense of inability to manage money, when the real problem is that income and living expenses are inconsistent from the beginning.

So if the income is not enough, what should be adjusted is not effort, but "how to use this formula."

At this time, the word "savings" should not be seen as a long-term savings. There is no need to think about big goals. Savings should serve as a basic reserve, to support emergencies, and not to make the situation worse.

For example, instead of saving 1,500 baht,

It could only be 300 or 500 baht a month.

Or 1-3% of income.

This amount may not make life better immediately.

But still not causing life to crash

The important point is not numbers, but to save continuously without having to reuse that money every month.

If savings make it necessary to cut costs or make it necessary to borrow to live, it means that the proportion set is too high for real life.

Another thing that is often overlooked is that the word "expenditure" is not the only way. Expenditures should be separated.

Part of that is necessary expenditure.

Food, housing, travel, drug costs can hardly be reduced.

The other part is the expenses that help keep living.

Like a cup of coffee a day, a small meal.

Or a small charge that reduces tension.

Cutting off all back group expenditures, may make accounts look better in the short term, but in the long run often causes financial discipline to break.

Because life is too tight and will eventually drop out of capital.

For those whose income is not enough

The formula "Revenue - Savings = Expenditures"

It's not used to stabilize, it's used to control more damage.

Our goal is not to increase savings faster.

It does not need to recover, does not create new problems, and does not need to start from scratch repeatedly.

The success of this savings formula during this period is therefore not measured by the savings, but by the fact that the financial position has not deteriorated.

An important precaution is not to use savings to drown out guilt. If real money is needed, it should be recognized as an emergency, not a failure, and not as immoral.

Don't just think that this savings formula is a rich formula, and it shouldn't be used as a measure of value for anyone, it's just a tool.

That if used in the right circumstances will help ordinary people cope better with life without hurting themselves.

If the income is not enough, the reinforcement to stand.

More important than trying to do everything correctly according to the texts.

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