This simple rule is easy to read and hard to implement.
today most of people will sharply focus on total earnings as this is what our educational system and societies teaches and hardly on total saving management and placing them into right assets so it can compound.
total earning = how much is your gross earning
total expense = how much you spend ( expense which has to be done like education for family / medical expenses / living expenses and your lifestyle spending behavior)
total saving = how much you save for your family future living expenses and to maintain the same level of lifestyle in case their is turbulence in gross earnings or incase their is emergency where there is need of quick liquid funds to deal with it.
total expense management should always be learned in early stage of life so that this habit compound with time.
today the major contribution of expense are linked with the way we approach our living management.
living management is directly linked with lifestyle spending behavior.
we all need to upgrade our living management so it gives us better experiences and time if we do it wisely it will surely bring value.
the goal should be to move living management directionally towards simplified living approach which is directly proportional to total saving.
once you achieve this or are in this direction you will observe saving automatically gets increased.
saving management = what needs to be done with it ?
it should be a habit + it need to be re-invested into assets like real estate / financial instruments / learning new skills / family future goals etc.
financial instruments is the area which is never taught in basic educational system or by societies which it should hopefully this change will come with time in a similar way as we are taught today by society to invest in real estate / gold
the way we upgrade our living management with time ( this is by default )
we also need to upgrade our investment management ( this is not by default it has to be build )
how to upgrade investment management ?
today world is open source so self learning is best way to learn it just need to invest some time to it.
If the focus is moved from total earning to total saving
investment management starts getting build with time.