Budget

A budget is a simple equation. Make your expenditures lower than your income, or make your income higher than your expenditures.

A budget is Limiting Waste.

Income - incoming compensation received in trade for knowledge, effort, time and resources. You are able to make the trade more valuable for better compensation by increasing your knowledge, efforts, time and resources.

Expenditures - outgoing compensation sent in payment for things and services. These things include housing, food, utilities, transportation, subscriptions, entertainment, travel and emergencies.

Once you get the ratio of your budget in order, you can use the extra income to build wealth.

Wealth is also a simple equation. Make your obligations less than your investments, or make your investments greater than your obligations.

Obligations - Ongoing outgoing transactions made to pay down debts from previously bought stuff and required payments. This is compounding outgoing money, meaning it gets bigger the longer you wait to pay it off.

Investments - Ongoing incoming transactions made to settle debts from previously shared resources. This is compounding incoming money, meaning it gets bigger faster the longer it is invested.