process
Income Has No Ceiling
The rule
You can cut costs only down to zero, but earnings can keep climbing.
Where it flips
Chasing more income while spending grows just as fast leaves you no richer. The repair is to keep costs steady as income climbs, so the gap turns into savings.
Saving is powerful, but it has a wall. You can only cut spending down to zero, not below. Income has no such wall; it can keep rising for years. So once you have trimmed the fat, turn your effort to earning more. A new skill, a side shop, or a better job lifts the ceiling.
A worked example
Aman had squeezed his costs as far as they could go. He learned a new skill, raised his income by 20,000 a month, and his savings jumped. [illustrative]
How to spot it
- ·Your spending is already cut to the bone
- ·You only think about saving, never earning more
- ·Every raise gets eaten by bigger spending
Scott Trench · Set for Life