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Business Strategy with Hirav Shah MAY 09, 2025 | The Indian Eye 34

The New Formula to Save More Money:

INCOME - SAVING = EXPENSES

Most people end up with little or nothing to save because spending always feels urgent,

while saving feels optional

5. Common Challenges and How to
Overcome Them
• Challenge 1: Struggling to Cover
Expenses
• Solution: Start small. Even saving
5% of your income builds the hab-
it. Gradually increase the percent-
age as you adjust.
• Challenge 2: Unexpected Costs
• Solution: Create an emergency
fund as part of your savings to
handle unforeseen expenses with-
HIRAV SHAH out derailing your plan.
• Challenge 3: Impulse Spending
• Solution: Use cash for discretion-
I ntroduction: A Game-Changing When savings are non-negotiable, they become a habit. Over time, this habit compounds into ary spending or set strict limits on
credit card use.
Shift in Financial Thinking
Hirav Shah advises: “The key to
For years, we’ve been taught
the conventional formula: Income significant financial security (File photo) overcoming challenges is consisten-
- Expenses = Savings. This mind- lem isn’t earning too little; it’s prior- 4. Boosts Financial Confidence cy. Even small, regular savings can
set prioritizes spending over saving, itizing spending over saving. Flip the Knowing you’re saving regularly lead to big results over time.”
leaving many of us wondering where formula, and you’ll flip your results.” gives you peace of mind and con- Conclusion:
all our money went at the end of the trol over your finances.
month. But what if we flipped this Start Saving Smarter Today
outdated formula? 2. The New Formula: 4. How to Implement the
Income - Saving = Expenses Formula in Your Life ransforming your financial
habits starts with flipping the
Introducing the new financial formula: How It Works Step 1: Determine Your Savings Goal Tformula. By making Income
Income - Saving = Expenses. Set Aside Savings First: Decide Aim to save at least 20% of your - Saving = Expenses your guiding
how much you want to save (e.g.,
This simple yet powerful shift 20% of your income). income. Start smaller if necessary principle, you’ll prioritize what truly
forces you to prioritize savings before Use the Remaining Income for and build up over time. matters: building a secure and pros-
perous future.
Step 2: Automate Your Savings
spending, ensuring that you’re build- Expenses: Adjust your spending to fit Set up automatic transfers to a
ing wealth rather than just scraping within what’s left after savings. savings account right after payday.
by. Let’s dive into how this formula Why It Works This ensures saving happens before Take Action Today: Decide how
works and why it can transform your • Forces you to live within your you can spend. much you’ll save, automate
financial life. means. Step 3: Track and Adjust Expenses
• Prioritizes financial goals over im- Use budgeting tools or apps to the process, and adjust your
pulse purchases.
1. The Problem with the Old Formula • Builds discipline and long-term monitor spending and make sure it spending accordingly. Your
What We’ve Been Taught wealth. aligns with what’s left after saving. financial freedom is just one
The traditional formula—In- Step 4: Reduce Unnecessary Expenses
come - Expenses = Savings—sounds 3. Benefits of the New Formula Identify areas where you can cut smart formula away.
logical, but it’s flawed. It makes sav- 1. Builds a Savings Habit Automati- back, such as subscriptions, dining
ing an afterthought, dependent on cally When savings are non-nego- out, or impulse purchases. Hirav Shah concludes: “The
what’s left over after you’ve spent on tiable, they become a habit. Over EXAMPLE: secret to wealth isn’t about earning
bills, shopping, entertainment, and time, this habit compounds into more; it’s about saving smarter. Flip
more. significant financial security. • Imagine you earn 5,000 per month the formula, and you’ll flip your fu-
The Real Issue 2. Reduces Lifestyle Inflation and decide to save 20% (1,000). ture.”
Most people end up with little When you save first, you’re less • Savings: 1,000 (automatic transfer
or nothing to save because spend- likely to let expenses creep up as to savings).
ing always feels urgent, while saving your income grows. • Expenses: 4,000 (allocated for
feels optional. This approach leaves 3. Prepares for Emergencies rent, groceries, utilities, and dis- The writer is a well known Business
no room for unexpected expenses or With consistent savings, you’re bet- cretionary spending). Turnaround Specialist, Astro Strategist,
long-term wealth building. ter equipped to handle unexpected • This approach ensures your sav- and BestSelling Author.
Hirav Shah reflects: “The prob- costs without going into debt. ings grow consistently. [email protected]

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