ISE rule

ISE or ISA?? Dun worry, this blog is about finance. So it is not ISA, it is ISE.

So wat does ISE stands for??? Income-Saving-Expense.

When we get our income, we tend to spend it first. Then we'll oni save the remaining. For example, if our income is 500 and we spend 450, then we'll save the remaining 50 in either bank account or else where. So the formula is 

Income - Expense = Saving

However, this rule is not really correct. Because if we have money, we tend to spend more. For example, if we see something we like, then we spend our money on the thing. I'm not saying tat we should not enjoy ourselves. Just tat we should have some limitation. If we enjoy now and we suffer later, is it really worth it? Y not keep some money first to make sure u can enjoy ur future life?? 

So the correct rule is

Income - Saving = Expense

Just imagine, one day if u r facing problem of income loss, at least your saving can help u. If u dun have saving at tat time, wat r u going to do? Borrow from family members o frens? Well, isn't it ur saving will be a better choice? 

This weekend is going to be long. Enjoy ur weekend. =)