For readers who have read so many books on personal finance this article may be unacceptable. Still I wrote it with the business person in mind. I tried to approach the subject matter from the point of entrepreneurship.

The idea for this writing came a few years back when I read a view point on personal wealth creation that turned my financial reasoning around for good.

Before then I believed the right path to financial freedom was in saving alone. Reducing expenses is surely not a bad thing. In fact it still is the bedrock of personal finance but making it the only focus of your race to financial freedom is simply taking the rough path.

While I do not fault some popular personal finance gurus and advisers on their tips for financial independence my only grouse is that those pieces of advice are many times not ambitious. There has to be a more aggressive approach to increasing your networth.

For a worker who earns a fixed amount as salary that barely covers his needs but wants to become financially independent as soon as possible what advice will you give him? Will it be enough to ask him to reduce his feeding expenses, transportation costs and housing expenses and save the savings made from them?

There must be a better approach to help him with his finances.

What if you ask him to keep his expenses at an acceptable level and explore channels to increase his income, saving and investing the extra income. This looks to me a more pragmatic option.

During my struggle with finances I had tried to bring myself to reducing my expenses appreciably. I devoured books and applied all the advice on savings including automatic deduction from income. While some worked the results were not very satisfactory for me. I wanted appreciable impact in my finances,

http://nairabrains.com/2011/07/the-right-approach-to-personal-finance-between-increasing-your-income-and-reducing-your-expenses/