[Yugocean]

Understanding savings requires you to have read the technique of "paying yourself first" many times, but it is necessary to understand it. This quote is from the book Rich Dad, Poor Dad by Robert Kiyosaki.

It means that you should set aside a part of your income (10 or 20%) for future gains (for investment at right place), and use the remaining income for your expenses. More specifically, it means budgeting your household so that it can survive without a 10-20% of your income.

Due to financial illiteracy, most people covers all of their expenses first, believing that they will save the money that is left over after spending. Such people are unable to save even after increasement in their income, because their living conditions change as a result of this ratio. First, savings should be started, and for this, a budget should be made according to the remaining income.

[Treborika]

Now I get it. You must plan for your budget less your 10% savings not saving what is left after spending the whole salaries

[Yugocean]

Now I get it. You must plan for your budget less your 10% savings not saving what is left after spending the whole salaries

Thats it. People use this phrase "Pay yourself first", without even knowing what this is all about, there are many ideas here too, but only quote.

[Vehlijanta]

You need to stick with this if you like to have a secured future

[nela13]

Getting into the habit of saving a portion of our salary before paying any expenses is a big step towards improving our financial situation. While it may seem exactly the same as saving what's left of our salary, the truth is, it's not. By “paying yourself first”, we are prioritizing our savings, while in the second case, we are leaving them for last. This change in habits can make a significant difference over the months, as it will indirectly “force” you to live with less money in your wallet.

[augusta]

You need to stick with this if you like to have a secured future

This is all about having a financial free future and it will work if we understand it.