Learning about finance is an important aspects of life. The more early, we learn about managing finances helps us to get better with age. As a child we were introduced to piggy bank which help us to learn about saving. Likewise, early basic education about finances empowers young people to manage money effectively, avoid debt, and build a secure financial future. My parent always told us to be in limit when it comes expenses. The same concept is beautifully explained in following Sanskrit lines ;
अल्पेन विभवेनैव व्ययाधिक्यं न युक्तितः |
क्षीणेन वाससाच्छने पादविस्तारणं यथा || महासुभषितसंग्रह
Alpena vibhavenaiva vyaaadhikyam na yuktitah. Ksheenena vaasasaacchane paadavistaaranam yathaa.
Alpena = with a little.
Vibhavenaiva = vibhavena + aiva.
vibhavena = by the wealth.
Aiva = already, really.
Vyayaadhikyam = vyaya + aadhikyam.
Vyaya = expenditure.
Aadhikjyam = excessive.
Na = not.
Yuktitah = reasonable.
Ksheenena = torned, weakened.
Vaasasaacchanne = Vaasaasa + aacchanne.
Vaasasa = clothing, cloth.
Aacchanne = covered by.
Paada = feet.
Vistaaranam = outstretching.
Yathaa = for instance.
i.e. In case of having very little wealth, it is not reasonable to spend more than the income, just as it is neither possible nor appropriate to stretch one's legs while covering oneself with a small and old sheet.
There is a saying in Hindi too - 'Te te paon pasaariye jitei lambi saur' which is inspired by this proverb and which means that spending more than one's capacity and income is harmful and foolish. It is a well known dictum of Economics that income and expenditure should be well balanced. When we consistently overspend we are likely relying on credit cards or loans to cover the difference, which incurs interest charges and makes it harder to pay off the initial debt. If all our income (or more) is going towards expenses and debt repayment, we won't be able to build an emergency fund or savings for retirement and future goals.
In essence, living within our income, or ideally spending less than we earn, is the foundation of sound personal finance, allowing for savings, investment, and financial peace of mind.