Make a detailed financial plan and stick to it. Define specific financial priorities and goals. Limit unnecessary purchases and create a specific budget for daily spending. Learn how to manage money by reading books or taking a course on personal finance. Re-evaluate your spending habits and find ways to change them. Avoiding carrying cash, using ATM cards, or activating online banking services can help you control your spending more easily. However, it is important to find the specific cause and take appropriate measures to fix the problem.
Modern society often creates pressures and expectations about spending. Maybe you feel the need to keep up or spend money to show social status. This is an element that can make money difficult to hold. Some people do not have a clear financial plan, do not track and manage their daily expenses, leaves money easily wasted and not used efficiently. It may be due to unnecessary shopping habits, spending money on entertainment or eating. This leads to the money not being used for a purpose.
Topic: Economic problem, why is fiat difficult to hold. - page 6. (Read 1330 times)
Fiat currency, which is paper money that is not backed by a physical commodity like gold, can be difficult to hold due to several economic factors. The first is inflation, which erodes the purchasing power of fiat currency over time. As more money is printed and circulated, the value of each individual unit decreases making it less valuable to hold onto. Another factor is the interest rates. When interest rates are low, it can be more attractive to invest money in other assets that offer higher returns, such as stocks or real estate. This can lead to a decrease in demand for fiat currency as people seek out alternative investments. Fiat currency can be a convenient means of exchange for day to day transactions, it can be difficult to hold onto as a long term store of value due to these economic factors.
so there are indeed some conditions that make it difficult for someone to hold a fiat in their hands. Apart from the temptation to shop, sometimes unexpected needs are also another cause.
Yes. Especially the needs of women, myriad. yes. You are right, if you are not good at managing finances and by making a priority scale, I think it will end with additional loans (debt) and will always be repeated. open again, close again and it will continue like that.
Of course, regardless of anyone's financial situation the cost of living has affected everyone or will affect them in the coming period. Although some people cause unnecessary consumption and waste by spending without paying much attention to today's price increases, the fact that many people do not spend in this way is entirely due to abnormal increases in the cost of living. And yes, if inflation cannot be dealt with and if the inflation rate continues to increase for a while, causing the prices of basic consumption products to increase unfortunately this situation will negatively affect many individuals and the country's economy. In this process, it will be useful to determine a roadmap that will be suitable for all conditions and to pay attention to our expenditures.
Inflation drives up prices, but it only seems too difficult at the initial stages, because after some time, the economy evens out the disparity in price growth and income growth, since employers will be obliged to raise wages for workers according to the level of indexation from inflation.The growth of inflation is provoked by human greed, so we constantly see rising prices. Everyone wants to earn more. Perhaps in this case, not very reasonable decisions of the government contributed to the growth of inflation, but this does not change the essence.
Why is money at hand difficult to hold?
Because it's a centralized currency and can be affected by the means of inflation, it's not profitable to hold because it depreciate in value, there's no privacy with the use of fiat, many believed it's a liability to hodl since it will decrease in value over time, there's no form of holding a fiat currency that can be compared with bitcoin in cryptocurrency not to talk of the trust in which is not found with using fiats from the commercial institutions, banks and government regulations.These are the ones that can provide us a profit after. There is no privacy in fiat but it's not a big deal to the fiat users. You will be surprised if how many people trust fiat and the institutions related to it but their view will change once they know more about Bitcoin.
Why is money at hand difficult to hold? I usually find it difficult to keep track of money anytime I have cash at hand, I make plans to hold money, but It never stays because something always demands the money, it is even so bad now that money kept in my account is also now being affected due to expenses. This is not something that happens to only me, I know that because of how money can easily be spent, many people now decide to avoid having cash, avoid taking ATM cards from their banks and also avoid activating USSD or internet banking, but is that really a long term solution? I blame myself a lot for spending so much and being irresponsible with money, but in your opinion, do you think that the soceity is contributing to the high and many expenses making money not to stay or is it just a bad habit I have?
LOL! You can never stop spending, just pray and work hard so you won't stop earning. By the way, money are meant to be spent
It's now depend on what you're spending money on. If you're spending money on unnecessary things, then you should be worried and it's better you put a stop to it.
Doing away with cash or ATM will not stop you from spending money as long as you have it, it can only limit your spending to some extent. The funny thing about this is that whether you are earning or not, you must spend. The society has nothing to do with your expenses, your individual self is responsible for your financial management. Keep earning and keep spending.
the same condition may also be experienced by others. because basically inflation which makes the prices of basic necessities soar high will of course also force everyone to spend or use more money to meet their daily needs. So that some people find it difficult to stay thrifty. and they become more wasteful because they are pushed by the soaring prices of necessities. Prolonged inflation will also make people's economic power decrease which will trigger a recession which is also currently being experienced by several countries.
Of course, regardless of anyone's financial situation the cost of living has affected everyone or will affect them in the coming period. Although some people cause unnecessary consumption and waste by spending without paying much attention to today's price increases, the fact that many people do not spend in this way is entirely due to abnormal increases in the cost of living. And yes, if inflation cannot be dealt with and if the inflation rate continues to increase for a while, causing the prices of basic consumption products to increase unfortunately this situation will negatively affect many individuals and the country's economy. In this process, it will be useful to determine a roadmap that will be suitable for all conditions and to pay attention to our expenditures.
soceity is contributing to the high and many expenses making money not to stay or is it just a bad habit I have?
That's both and in addition the inflation. All things are becoming more and more expensive, now if you have a habit of unnecessary spendings, that's what make it hard for you to hold cash, since cash is easier to spend as well as having credit and debit cards.
Actually, it is not only you who has been struggling with saving money. Many people also do, especially the young professionals who have less interest in investments as they are still spending their money with leisure and luxurious life style.
I agree, I find it hard to resist spending if I have money at hand — even tho my belly may be full, I still eat some fast food, or buy t-shirts, go to mall. When I was younger, I was better against these habits that have come upon me.
Also, I find it hard to keep track of cash purchases so have started to use online payments.
These temptations are certainly not easy, of course, especially when you are still young,Also, I find it hard to keep track of cash purchases so have started to use online payments.
the more mature I think we realize how important it is to reduce non-essential expenses,
Of course it would be better if at the beginning we realized that managing finances is important.
legendary
Activity: 1358
Merit: 1565
The first decentralized crypto betting platform
If the OP is doing well, he will find the fiat difficult to hold and spend it all, but some of it will be spent on things worth holding like bitcoin. As fiat depreciates it doesn't pay to hold much and millionaires in fact hold little, especially relative to their wealth. They do have assets that are worth holding, and many of them are income producing. With that income they cover both current spending and purchases of more assets.
But it seems to me that this is not the situation of the OP, who has fallen more into consumerism than anything else, i.e. he spends his money without buying assets. You'd better start buying OP, especially bitcoin. You will be better off in the future.
But it seems to me that this is not the situation of the OP, who has fallen more into consumerism than anything else, i.e. he spends his money without buying assets. You'd better start buying OP, especially bitcoin. You will be better off in the future.
I agree, I find it hard to resist spending if I have money at hand — even tho my belly may be full, I still eat some fast food, or buy t-shirts, go to mall. When I was younger, I was better against these habits that have come upon me.
Also, I find it hard to keep track of cash purchases so have started to use online payments.
Indeed, sometimes digitalization has become a problem experienced by people without them realizing it.Also, I find it hard to keep track of cash purchases so have started to use online payments.
I also tend to spend a lot of money online compared to physical shopping, but self-control and financial management will remain a priority for me. I'm not saying extravagance is bad for everyone, especially if they have a pretty good monthly income.
But when the level of use of money has reached 90% more than a month's salary just because of uncontrollable expenses, it is clear that we will be in financial trouble when we need urgent expenses. The thrifty mindset must be emphasized carefully, so the habit must be reduced slowly.
The ever-increasing cost of living makes us have to be vigilant because it can get us stuck with debt, many people use shortcuts by going into debt when they feel they have a need that cannot be met from regular income, and in my opinion the best thing right now is to force yourself to be able to invest in cryptocurrencies.
I agree, I find it hard to resist spending if I have money at hand — even tho my belly may be full, I still eat some fast food, or buy t-shirts, go to mall. When I was younger, I was better against these habits that have come upon me.
Also, I find it hard to keep track of cash purchases so have started to use online payments.
Also, I find it hard to keep track of cash purchases so have started to use online payments.
Why is money at hand difficult to hold? I usually find it difficult to keep track of money anytime I have cash at hand, I make plans to hold money, but It never stays because something always demands the money, it is even so bad now that money kept in my account is also now being affected due to expenses. This is not something that happens to only me, I know that because of how money can easily be spent, many people now decide to avoid having cash, avoid taking ATM cards from their banks and also avoid activating USSD or internet banking, but is that really a long term solution? I blame myself a lot for spending so much and being irresponsible with money, but in your opinion, do you think that the soceity is contributing to the high and many expenses making money not to stay or is it just a bad habit I have?
To me it looks like there are several possible reasons and also solutions. Inflation and price rises is one of the reasons. You have to spend more on utilities, groceries, rent, insurance etc... Secondly, you're living beyond means obviously. You have to learn how to control your expenses or look for a better job (or some side hustles).
Fiat money, or cash, OP? Because you say fiat money "at hand" which makes me think that you're talking about cash.
You must have problems with over spending and that's not a fiat's problem but your own. It's the same debacle as between an owner of a gun and the gun itself. People who want strict gun laws claim that guns kill and people should not use them, while those who understand how it works say that guns don't kill, but people do and they'd do it with, or without a firearm.
If you have a problem with holding fiat money, and you were given bitcoin, I bet you'd spend it just as fast. It's not about the type of money that you have but your attitude towards it.
You must have problems with over spending and that's not a fiat's problem but your own. It's the same debacle as between an owner of a gun and the gun itself. People who want strict gun laws claim that guns kill and people should not use them, while those who understand how it works say that guns don't kill, but people do and they'd do it with, or without a firearm.
If you have a problem with holding fiat money, and you were given bitcoin, I bet you'd spend it just as fast. It's not about the type of money that you have but your attitude towards it.
I don't know who to blame in your case but yourself and your policy of spending money. I think you have to be wise enough to manage your finances so that you don't get into financial problems all the time. When you know that fiat values depreciate all the time then you really need to manage your finances and not spend them on something that is not useful.
Imagine how easy it is that $100 is no longer enough to meet 7 days' needs when you have dependents for your children and wife, so limiting spending and managing finances properly is advice for anyone to avoid financial problems.
Imagine how easy it is that $100 is no longer enough to meet 7 days' needs when you have dependents for your children and wife, so limiting spending and managing finances properly is advice for anyone to avoid financial problems.
Why is money at hand difficult to hold? I usually find it difficult to keep track of money anytime I have cash at hand, I make plans to hold money, but It never stays because something always demands the money, it is even so bad now that money kept in my account is also now being affected due to expenses. This is not something that happens to only me, I know that because of how money can easily be spent, many people now decide to avoid having cash, avoid taking ATM cards from their banks and also avoid activating USSD or internet banking, but is that really a long term solution? I blame myself a lot for spending so much and being irresponsible with money, but in your opinion, do you think that the soceity is contributing to the high and many expenses making money not to stay or is it just a bad habit I have?
That is how the economy is arranged to work, governments print a lot of fiat not only to steal from their citizens, this move causes them to understand that if they keep holding their fiat then the less it will buy on the future, so it is preferable to spend it now than to keep it, however while things are still within the control of the governments at some point they get too heavy-handed with their fiat printing policies and people begin to spend their money as soon as they get it, a process known as money velocity, and if it gets too fast it can destroy the economy. I blame myself a lot for spending so much and being irresponsible with money, but in your opinion, do you think that the soceity is contributing to the high and many expenses making money not to stay or is it just a bad habit I have?
You just need to know what the solution is, and one of them is to limit unnecessary spending of money.When inflation rises, you will feel the effects. Fiat loses a lot of its value and it is even more pronounced when the value of an item becomes very expensive. As the cost of living increases, lifestyle can sometimes be problematic, so cut back on anything you feel you don't really need instead of blaming someone else for how you spend your money.
You have made it personal, your context, then is surely you fault, bad habits, etc. Or that your saving capacity is zero, you don't generate so much money so that according to your expenses you can afford to save.
On the other hand, we live in times in which we abide by the advice of third parties, so taking "truths" as saying that it is the fault of our current consumer society is just justifying our bad financial reality, which depends on your common sense. and responsibility. It's simple, use the financial benefits correctly and give your Fiat a better sense of use.
It sounds like a budgeting issue; either the OP has a lot of money and doesn't care about proper management of funds, or the exact opposite. Cash is difficult to keep track of, which is the main reason I've stopped using it, along with safety reasons. Moreover, I find it inconvenient to use, as I don't like the idea of having to withdraw money every once in a while. Thus, I resort to paying with my debit or credit card every time, with which I can easily keep track of how much I spend and create a budget.On the other hand, we live in times in which we abide by the advice of third parties, so taking "truths" as saying that it is the fault of our current consumer society is just justifying our bad financial reality, which depends on your common sense. and responsibility. It's simple, use the financial benefits correctly and give your Fiat a better sense of use.
Some claim that cash is king, but I disagree; it's not convenient for our day and age anymore. While card payments also have disadvantages because governments have started tracking our expenses, something that I absolutely hate, they are a necessity.
You have made it personal, your context, then is surely you fault, bad habits, etc. Or that your saving capacity is zero, you don't generate so much money so that according to your expenses you can afford to save.
On the other hand, we live in times in which we abide by the advice of third parties, so taking "truths" as saying that it is the fault of our current consumer society is just justifying our bad financial reality, which depends on your common sense. and responsibility. It's simple, use the financial benefits correctly and give your Fiat a better sense of use.
We live in a consumer society, that's true. Am I ready to say that society itself is to blame for this, probably not, but society allowed this and this is not very good. Whoever is willing to hold fiat will fail because it's a losing strategy these days, inflation is too high, and the printing press will continue to solve government problems. For them, this is a magic wand that can solve all problems, and for those who keep fiat, this is the worst decision that could be made. They work hard all their lives to save something, but in the end it will all be in vain, because government policies have stripped them of everything. On the other hand, we live in times in which we abide by the advice of third parties, so taking "truths" as saying that it is the fault of our current consumer society is just justifying our bad financial reality, which depends on your common sense. and responsibility. It's simple, use the financial benefits correctly and give your Fiat a better sense of use.
Jump to: