"That which we call our 'necessary expenses' will always grow to equal our income unless we protest to the contrary."
In the previous chapter (The 1st Cure), we learned the golden rule: "Save 10% of everything you earn." It sounds simple, right?
But the moment Arkad taught this, the students raised a very valid objection. One student stood up and shouted: "How can we save 10% when our income is barely enough to cover our necessary expenses? We are already struggling!"
Arkad smiled. He knew this objection would come. And thus, he introduced the Second Cure: Control Thy Expenditures.
1. The Confusion: Needs vs. Desires
Arkad asked the student: "You say you earn barely enough. But look around. Some of you earn twice as much as others. Yet, all of you have empty purses at the end of the month. Why?"
The answer is a harsh truth about human psychology: "Necessary expenses always grow to equal our income."
The Indian Context:
When you earned ₹20,000, you rode a bike. It was a "Need."
When you started earning ₹50,000, you bought a Car on EMI. Now the car became a "Need."
We confuse our "Desires" (Wants) with our "Needs" (Necessities). Unless you control this, no amount of income will ever be enough.
2. The Budget is Not a Prison
Many people hate the word "Budget". They think it means stopping all fun and living like a miser. Arkad teaches the opposite.
A Budget is a tool to liberate you. It is not there to stop you from enjoying life. It is there to make sure you enjoy the things that truly matter, without the guilt of running out of money.
It acts like a lighthouse in the dark ocean of your expenses, showing you where the "leaks" are in your purse.
3. How to Apply This Today (The 50-30-20 Rule)
To control thy expenditures in 2026, you don't need a clay tablet. You need the 50-30-20 Rule.
- 50% for NEEDS: Rent, Groceries, Electricity, EMI (Basic). These are things you cannot live without.
- 30% for WANTS: Netflix, Dining Out, Weekend Trips, New Clothes. This is your "Fun Money."
- 20% for SAVINGS: This is the "Pay Yourself First" part. This goes into SIPs or Gold.
The Secret: If your NEEDS are taking up 70% of your income, you are living in a house you can't afford or driving a car that is too expensive. Downsize.
4. The Golden Rule of The Second Cure
Arkad gave a simple instruction to his students:
"Budget thy expenses that thou mayest have coins to pay for thy necessities, to enjoy thy pleasures, and to gratify thy most worthwhile desires without spending more than nine-tenths of thy earnings."
In simple English: Plan your spending so that you fit your life into 90% of your income. Cross out the rest.
Key Takeaways
- Audit Your Spends: Open your bank statement. You will find at least 3 subscriptions you don't use. Cancel them. That is free money.
- Delay Gratification: Before buying something expensive (like a phone), wait for 30 days. If you still want it, buy it. Usually, the desire fades.
- Don't Impress Neighbors: Most of your "expenses" are just status signals to impress people you don't even like. Stop paying for their approval.
Frequently Asked Questions (FAQ)
Q1: What is the best app for budgeting?
A: You don't need an app. A simple Excel sheet or a notebook is enough. The act of writing down expenses makes you conscious of them.
Q2: Should I stop eating out completely?
A: No. The budget allows 30% for wants. Enjoy your life, but stay within the limit. Don't let your "Wants" eat into your "Savings."
Q3: How do I control impulse buying?
A: Unsubscribe from shopping emails. Delete shopping apps from your phone. Make it *harder* to spend money.
Up next: Part 5 – The 3rd Cure (Make Thy Gold Multiply).
📚 Credit & Disclaimer:
This post is a summary based on the classic bestseller "The Richest Man in Babylon" by George S. Clason.
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