I have always heard people say this most of the time that ‘if my salary goes up, I can lead a comfortable life.’ Does it really work? Absolutely not! Because most of the time when our salary increases so as our expenses. In other sense, our lifestyle changes according to the changes in our income.

So what makes the change?

Income is important, but what is more important is our spending. And yes, if we spend more, we will be left with fewer amounts to save. And, if we spend less, we can save more.

How can we control our spending?

It is simply by considering the opportunity cost.

Opportunity cost is nothing but a method you can use when you are planning to buy something. For example, if you are going to spend ₹50,000 for a product, now consider what you will get out of it if you don’t spend that money, will you be able to use that money for some other things which will be far better than your current spending, if the answer is yes don’t spend if it’s no spend it now. This method will help you to know if you are missing some opportunity by spending and through that, you can control your spending.

So next time when you spend your money think of opportunity cost because once you spend it, it will never come back.