Moneytalk

Q & A with The Money Doctor

Q: What is the best way to cut spending? I have a healthy spending habit that makes me spend whenever I have some money.

A: The best way to cut your spending is to invest whatever you have into one opportunity or another to generate additional income for you. The ideal system is to "pay yourself first," that is, whenever any money comes into your hand take out what is meant to be invested, quickly invest it and live off the rest.

Stop spending on your expenses or wants first whenever any money comes your way. This will continually lead you to lack as any spent on your needs and wants is gone forever. That portion that you take out for investment purposes will continue to provide an income for you.

I would advise you start taking out 10% of whatever comes in for investment purposes and increase this amount steadily as your earnings increase. This will automatically reduce your spending.