INCOME V.S. OUTCOME

“Cause and effect” – A saying apparent in a lot of picture films, but how relevant is this in our everyday lives and spending?

As consumers we are all in control of what the outcome will be of our income, yet are we cognisant of these factors?

Learning how to control the outcome of our income is very basic and it’s an ability that we as humans were born with; planning.

Due to the ever changing factors in our economy, one needs to constantly be planning and amending those plans accordingly.

When interest rates fluctuate and your bank increases your rate, we as consumers need to adjust our financial plans to align ourselves accordingly.

The fluctuation of rates could either allow us to save more or require us to ease up on the spending, the latter being somewhat harder to achieve.

We never really think that these rates will affect us that much, but in the long run it does. Despite what you may think, finding a corner and lying in the fetal position won’t make things go away.

The lack of planning has us delving into our savings or “emergency funds”, yet somehow we find ourselves trying to justify it to ourselves just so that we can feel better for spending money we don’t have.

This is a vicious circle that, once entered, could possibly never end!

The fact of the matter is that making a few simple adjustments will put you back in control of your finances and steer you away from falling into the debt trap and the street corner.

Take your income, align that with your expenditures and include possible savings.

It’s a simple plan and it’s something that you could do on a spread sheet or even long hand, whatever your preference may be. Just make sure you do it every month.

It’s all cause and effect - income V.S. outcome.

Plan your income and you will have control of the outcome.