The Concept of Personal Finances (The X-Curve)

They said that money is relative – when you have lots of it, you have lots of relative.  Kidding aside, the truth about money is this – it doesn’t matter how much you earn, it’s how much you save (I read that somewhere).

In this article, I would like to share with you the X-Curve.  This is not mine so please note that this is not my original, however this is a very good concept so we can understand clearly our personal economics.

This illustration tells us that the more we spend the less our wealth is (obviously).  We can also see that our spending habit affects whether our liabilities or responsibilities increase or decrease.  Assuming that your expenses are the same, as your income goes up your responsibilities decrease.  On the other hand, assuming your income is the same, if you increase your expenses, even how much income you make your income will decrease.  It’s actually a no brainer.

This picture also shows us that our goal as we grow older is to be more secured. Why is that?  Because as you grow older, your income opportunities become smaller.  That is why you should really make sure that you are taking care of your retirement now and not later.

I teach this in details in our Personal Financial Management Workshops and Sessions.  If you are interested, please check details below.


To know and learn more about this concept, you can enroll to one of our Personal Financial Management In-depth Sessions (venue is in Pasig City) or invite our team to your company for a Personal Financial Management Seminar and Workshop (1 Day session) by sending us an email at or call us at 0927-8931175.


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