Views: Spend money to earn money
Health of economy is dependent on how much money is in market than how much is in banks or storage. Imagine this: if everyone starts spending less and start putting money in a hole then what will happen? economy will collapse. It is will automatically bring down earning potential of each individual and lead to a financial disaster. Instead everyone should look at healthy level of spending and spend money within their budget. One should assume at least 50% of their income will be going towards their expenses in various ways and keep spending towards the essential and luxury of their own living. This in turn will make the businesses that survive on this spending. Don't just stop going to movies or restaurants. If you do that there are people whose lives depend on you going to movies. Instead spend moderately instead of over spending. If you are using going to movies once a month, keep doing it. To make economy health you don't have to start going to movies every day.
Your spending money contributes to earning of another person and in some cases it may be the reverse. Sometimes it is a chain of economic dependencies. Your spending feeds another industry and their industry drives another industry and that may be a driver for your business.
This rule applies not only to personal finances but business economy also. Each business has its income and expenses. Cutting down expenses is always a short term and maintaining expenses at a healthy level is most important things. Expenses made by your business will indirectly spurt health of economy.
In either case monitoring financial flow is most important thing to gain a better understanding. What is percentage distribution of your expenses to various categories year over year (or month over month) should be monitored. The expenses should be either maintained or distributed to higher or lower number of categories instead of cutting down completely. Important financial decisions should be taken after reviewing trends on regular basis instead of knee-jerk emotional reaction.
This utlimately results in a healthy economy. So, next time you feel economy is down, look at your own share in the down turn.
So, to earn more money, spend more money. One more thing to remember, spending need not always be throwing away money, it can be a wise investment too.
Note: I am not a financial specialist and above is just my personal opinion
Your spending money contributes to earning of another person and in some cases it may be the reverse. Sometimes it is a chain of economic dependencies. Your spending feeds another industry and their industry drives another industry and that may be a driver for your business.
This rule applies not only to personal finances but business economy also. Each business has its income and expenses. Cutting down expenses is always a short term and maintaining expenses at a healthy level is most important things. Expenses made by your business will indirectly spurt health of economy.
In either case monitoring financial flow is most important thing to gain a better understanding. What is percentage distribution of your expenses to various categories year over year (or month over month) should be monitored. The expenses should be either maintained or distributed to higher or lower number of categories instead of cutting down completely. Important financial decisions should be taken after reviewing trends on regular basis instead of knee-jerk emotional reaction.
This utlimately results in a healthy economy. So, next time you feel economy is down, look at your own share in the down turn.
So, to earn more money, spend more money. One more thing to remember, spending need not always be throwing away money, it can be a wise investment too.
Note: I am not a financial specialist and above is just my personal opinion
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