Can we get rich if we double our income, we immediately double our expenditure?

1. 61

   Elizabeth Guinooposted 14 years ago

   Can we get rich if we double our income, we immediately double our expenditure?

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2. 65

   simeonvisserposted 14 years ago

   No, the more money you save, the more money you have to invest and to let your capital grow. So doubling your expenditure right away is not a good thing if you want to get rich.

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3. 61

   Right On Timeposted 14 years ago

   We double our income through learning, because you get paid according to what you offer a company. Yes, expenditure is not a friend of richness.

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4. 60

   MickSposted 14 years ago

   That isn't so, is it?  Where did the idea come from that if you double you're income you will double your expenditure?  It may be so for someone without any self control, but really, how you spend/save the money you have is up to you.

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5. 60

   Jan Fowlerposted 14 years ago

   No way! You must have more money coming in and staying in to become wealthy. That is just good economic sense.

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6. 59

   Salliebbposted 14 years ago

   I should hope that if I double my income, I won't double my business expenses, although I might increase certain parts of my budget like advertising. However the whole purpose of the business exercise is to begin to save for our goals. I need to accumulate before I can change my lifestyle and begin to have passive income. I guess the anwer is that in order to double my income, I must change where I spend the money and as the income starts to double, I must invest to make some more money which eventually I will spend on making my goals a reality.

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7. 60

   weholdthesetruthsposted 14 years ago

   You didn't say what you're spending on.   If you double your income, but you "spend" it on productive or income earning things, that will increase your future productivity or income, then the answer is "yes".   
   
   But if you double your income, but merely spend it on things that do not produce, then, no.

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8. 61

   phamer13posted 14 years ago

   By limiting the negative cash flow you will definitely improve your cash position.

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