Others experience
problems as they climb the income ladder. For instance, the
more money they make the less cash flow they seem to have.
They ask the question, "why don't I have more disposable
money, if I have more income?" What is partially to
blame is not considering higher taxes, and disproportionately
higher cost associated with primary items, as we make more
money. The first thing many of us think of is getting a more
expensive home or car when our income goes up. That is ok,
as long as the cost of the new items are not out of proportion
to our take home income, and we can sustain the added payments
if our income is threatened with a loss in some way.
There
can be a fragile balance between income and spending; we
just have to figure out where we actually stand. This,
my friends, is where budgeting, or a budget analysis comes
in. Your analyses will give you the delicate balance between,
taxes, mortgages, car payments, savings, investing, retirement,
necessary expenses and incidental expenses.
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