Answers:
This quote is attributed to Bill Earle. It seems like common sense. If you have more expenses than income, you're going to be in trouble sooner or later. Clever way to say it, though.
Of course, I do. It is common sense and the quote has been around since the beginning of accounting.
Your expenses are more than what you make, so unless you downsize or cut off some of your expenses permenantly, you won't be able to keep up and go bankrupt.
It is aplicable to various aspects of life but mainly the financial case, here.
To maintain a certain level of lifestyle, you have to have an income level that is higher than the total of your expenses and other payments. Even more so, if you want to save, or invest.
Hope this helps.
Its also a copy of something Dickens wrote in David Copperfield said by Mr. Macawber,
'My other piece of advice, Copperfield,' said Mr. Micawber, 'you know. Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and - and in short you are for ever floored. As I am!'
Bill Earle
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