ECONOMICS

Detailed explanation-1: -Unfortunately, not really. When we are making loads of money we’re not as careful with our spending, or budget as strictly. We also increase our living expenses and spend to maximum capacity. The more we make, the more we can afford, so the more we spend.

Detailed explanation-2: -It’s hard to save any money if you are overspending. And spending more than you earn is an easy way to accumulate debt. You must repay the loan, with interest, by a set date.

Detailed explanation-3: -Consider allocating no more than 50% of take-home pay to essential expenses. Try to save 15% of pretax income (including any employer contributions) for retirement. Save for the unexpected by keeping 5% of take-home pay in short-term savings for unplanned expenses.