I had an email query on what the Buddha advised on financial management. The simplest answer that came to mind was two stanzas from the Sigalovada Sutta –
With wealth acquired this [skilful] way,
a layman fit for household life,
in portions four divides his wealth:
thus will he friendship win.
One portion for his wants he uses,*
two portions on his business spends,
the fourth for times of need he keeps.
*From a commentary, this portion includes what is spent on charity and offerings to support the Triple Gem.
The reply I got said that the management system doesn’t seem to work for those with low income. This was my somewhat unhelpful reply –
If the proposed system doesn’t work, it can mean one of/or two things –
1. The income is too low for expenses
2. The expenses are too high for the income
There are two solutions –
1. Increase income
2. Decrease expenses
If the above two alternatives cannot be effected, what’s left is to try to follow the Buddha’s proposed guidelines as much as possible, even if not exactly. We need to note that engaging in charitable works is a form of positive karmic investment too, though we should simply do good to help those in need and not harp on the beneficial ‘side effects’.
Related Articles:
Sigalovada Sutta
http://www.accesstoinsight.org/tipitaka/dn/dn.31.0.nara.html
Dighajanu Sutta
http://dharmafarer.googlepages.com/5.10DighajanuSa8.54piya.pdf
Adiya Sutta
http://dharmafarer.googlepages.com/2.1AdiyaSa5.41piya.pdf