The Art of Managing Money

What are financial records of the book this time?
There is a lot of information that we can get, but most importantly we have the whole picture of our financial condition. The point is that we can know in the spot-spot expenditure / income which we can fix with Art Money is Set.

Saving and Savings, Similar but Not Same
What's the difference between saving and Savings? Almost similar and often equated means, and indeed it is not wrong. Try habituate first explanation below:

Suppose we have a routine income each month, and of course every week there are always expenses. Then how do we get the savings?
Is often the way with income reducing expenditures.
Or formula can be illustrated like this:

earning - Expenditure = Savings

so the problem is the amount of savings that we do not get stabilized, many can not or can even have it at all. Then there is the guarantee that we always get our savings? The answer, of course, there is!
Now, try to look at the illustration of this second formula:

earning - Savings = Expense

Mathematically, the formula was the same but actually both of them clearly different. The difference is the variable Savings. In the first formula is the amount of savings depends on the expenditure. While in the second formula, we have set aside savings from income first. In the first formula, the savings could change as if arranged by the expenditure. On the second formula to ensure we get the savings that nominal, so here expenses set by savings.

Then how about the Saving?

Ok, back habituate the formula. With the beginning of savings set aside and we have the amount of money that can be used for expenditure. Money we use is free, does not spend even a problem because we have set aside savings first. Now what if the money is still left even though we have cut the savings? The rest is money that we as a saving.

Desire vs. Liabilities
let's talk about spending. Assume we are implementing the second formula from the previous explanation. Here, our next goal is to obtain the maximum value of saving. Basically there are 2 categories of expenditures occur, the obligations and desire. Liability is almost impossible because we set routine we usually spend each day (eg food), the very desire we can set. Sometimes, our desire to buy something is not so useful. In theory, it is not good if we actually buy the goods that we need is not so (usually because we do so desire). Now, our task now is to control our desire not to buy goods that are less useful. Human desire something really big, but it does not mean we can not manage them. My advice, before deciding to buy something that we want, it's good if we prioritize the value of the benefits of the item. And of course for that we need to do understand the difference between obligations and desire.