To answer this question i.e How do I stop spending money? We need to understand this in more deeper level. Actually this question means there is no money left at the end of the Month. There is more days than money. I will sharing some real learning from Robert Kiyosaki’s best selling book i.e Rich Dad Poor Dad. I would recommend this as the resource to understand the relationship with money.

Basically for the Working Professional the monthly income comes from Salary. Once you have the income then it goes to expenses and this is what is worrying that all the income is spent and there is no money at the end of the month. Now the question is where one has spent the entire monthly income. Where to buy Assets or Liabilities or Living a lifestyle which is not sustainable.

ASSET : Very simple and practical definition is any thing you buy is it having positive cashflow at the end of the month. It means after paying the EMIs is it still putting money into your pocket, then it is a ASSET. Now look at your expense statement and the EMIs you are paying are those items monthly or annual returns is more than the monthly or annual EMI you pay. If this is not true then it is not an ASSET and actually it is a liability.

LIABILITY : This is exactly opposite to the ASSET that it has the cashflow negative and depreciates in value.