Topic: How to spend money determines whether you can avoid unnecessary problems - page 9. (Read 1445 times)

I know someone that's definitely be guilty with all of those things mentioned. Keeps on complaining how tough life is but when its come to budgeting, you'll see him go first with those things that he don't really need. Buying expensive stuff to showoff the others on what type of person he is and trying to impress them as if he's a wealthy guy. But in real life, he's broke and it will be easily understood if he's cash broke but no, he's totally broke. No assets, no savings but then every payday spends to expensive coffees and dine outs. It's not necessary at all and I'm only thinking that he's treating himself but IMHO, that's just too much when you're always complaining how tough life is.

You didn't explain/say anything on how to spend money here but instead you blame them for being irresponsible.

Anyway, if OP can't tell you what you have to do if you are living a lavish lifestyle despite of how much you are earning or let's just say your salary isn't enough to keep up your weekly/monthly expenses, you should cut-off some of these lifestyle and wasting money on an overprice things that you don't actually want.

Be practical and spend your money wisely, it's okay to try those expensive drinks if you want to try them for the first time but don't make it as a lifestyle. You can do it later only if you are earning more than what you need or let's just say you are having too much extra money even after all of those luxurious lifestyle you did.

Regrets do always come at the end on which it is true that its their money and its their full rights on what they should gonna do with it.Being sensible when it comes to your actions then it would really be putting

you into a situation which you would really be making yourself avoid on possible problems in the future because of unwise spending.If you do have various income sources then spending a ton wont really be that

a problem but of course it would really be that important that you should really know about having those limits because we know that there's no such thing about unlimited funds.This is why it is
really that good if you do spend up on something which is really that important and dont spend that much when it comes to wants and overall it would really be on yours decision.

Yeah there could be some people still spending like hell like OP describes. It's their money in the end and it's their responsibility if they would choose to just lose it all before the time of need and urgency for money comes.
For the sake of my mental health and peace of mind like I mentioned previously here in the thread, I would just keep something at least. I might not be able to keep it all when the time of uncertainty happens, but hell at least I would somehow perish in "peace".

I would not even considering doing a loan just for the sake of spending on my wants.

Someone who does all of those things mentioned in the OP should already be rich, cus based on how i understand things to be, and maybe personal experience too, a poor man, or should I say, an average person in terms of finance, hardly would have the time or resources to go or register for a gym class, someone who hasn't had enough to eat and feed his or her family shouldn't be found eating out in an expensive hotel or spending so much on drinks.

One thing I can say right now is that, it pays to hustle and work hard while we are young, because a time is coming when we are not going to be as strong as we are when we are young, let's minimize spending while maximizing income, this is one of the tricks to become financially comfortable even as youngsters.

Something on the middle should be the goal, saving all your money and refusing to spend it when you need it is unhealthy, but not saving at all is a huge mistake, I say this because there have been studies which have been made and it is known that those that save their money early on their lives do much better than those that do not, and this is because the sooner you begin to save the sooner you can begin to invest and make money without lifting a finger.

I think age is a very important factor in this discussion for two reasons, the first one is they are often on lower wages at the youngest end as many countries stagger the minimum wage to a point. This means if you're only earning $5 an hour under 21, versus $10 an hour minimum over 25, there are vast differences in your ability or inclination to save money at that point. Second is that many younger people should be spending their money on life experiences to be honest, there is no point saving all your money up like a troll until you are two wrinkly and frail to have fun with it. People should definitely enjoy their younger years to the max even if that means spending every penny they earn in a monthly wage.

I think this is true if you are young, but at a certain age it is futile to try to invest money. For example, I still invest but I feel like I am getting close to saying that's enough, not because I am getting richer or my investment will be enough, but I do not have too many years left, I feel like I can live maybe another 20-30 years at most, and I rather spend that time having fun and living a good life instead of having a bad life and investing.

But, if you are 18 years old or so, you may have as much as 70 years in front of you, god forbid if nothing bad happens of course, in which case you can of course spend 30-40 years investing, that one would make sense.

It's actually very easy to see an estimate of how much we spend per month. Yes, I mean every month, we definitely know what we have to buy for our daily needs, what bills we have to pay. Maybe there will be a difference due to the increase in some basic commodities, but it will not make a very significant difference. From there we already have an idea of how much money we will spend to fulfill it all. Because maybe there will be one or two additional items and also there are unexpected expenses. I usually keep all receipts so I know what the difference is each month.

Well cause they spend their money that way, so they just keep doing it and regret it later on. It's not really a trap if you would look at it. Pretty sure that they're aware that they're losing money on things that are not necessarily worth spending for. 

You mentioned spending seven bucks for cup of coffee every morning? I would assume that it is a Starbucks purchase. I personally never bought anything from Starbucks since I can just blend my own coffee either around office or even at home. It is sometimes just social status that people wanted to show off that they're rich and people should be jealous of them. Those other scenarios you mentioned pretty much sums up what I usually see in celebrities or some of my friends in social media that just wanted to gain attention and yeah, I do not care.

It's their money, OP. Surely after they go broke, they would learn their lesson.

And I see you both didn't mention money to invest, I think we should add a long term investment for the future. Apart from the daily expenses and bills, I always have one to save and one to invest. In general, people like to eat delicious food, but should not waste too much money on food, especially fast food, which is harmful to our health if eaten too much. I only eat main meals and rarely snack. I prefer to save my money in order to invest.

There are things we don't need to spend money on but yet we direct our responsibility on them and they took away time and money, other things that needed crucial attention from us we give less time for because we are being careless not to be well observant enough from descerning things right, we may not be able to solve all the problems and challenges we encounter around us but we must have that ability to distinguish from the ones urgently needed to tackle.

You forgot to add the bills i.e water bills, electricity bills, internet bills and the like. This and then the grocery are the ones that are more important than personal care and appliances because we can still live a peaceful life without them. As long as we already have the basic and the most needed appliance like rice cooker to cook food and then gas stove then we are now good to go.

The rest can just be carried on. Insurances and savings are important but this can only come once we still have extra money from our salary. I see that you're a foodie. I think that's better than other habits like gambling or alcohol but you must still have a control, so that you won't spend more and then you won't have a health problem.

Problems simply arise because of your decisions especially in terms of one's financial status. If you are a minimum  wage earner and you are spending more than you can suffice, it won't be surprising to know that you would be in debt eventually. Orevention is indeed better than cure. If you would be prioritizing savings and investments at the early age, your sources of income would multiply which would help you to sustain your lifestyle and expenses, even unwanted situations. The root cause of evil is money; I disagree. But most of the problems revolve around monetary aspects. Think of the situation like a bucket of water and bottles as problem; if your bucket is full you can fill more bottles with it. The way you spend, earn, and utilize money would ofcourse reflect to the life you are currently living.

If you spend recklessly and need someone to hold your hands, You simply need to organize a scale of preference. That way, you could organize and prioritize them from the most important things you need to the least important.
Then, I also think that cause something works for a Mr A. That doesn’t mean it would also work for the next person. Although, it’s always nice to live within our means and avoid luxury goods if you can’t afford to maintain them.
I think it’s important to always be safe with the way we spend. The billions we’ve got today could fizzle out the next minute.

And you are not wrong on your assessment, most people I know have fallen into this trap and waste their money in stuff they do not need.

An example of this is replacing your smartphone as soon as a new and improved version comes out, the difference between one phone and the other is not that great and yet you need to pay a premium to obtain the latest technology for no noticeable gain on performance.

Now there could be few people out there which may need a new feature for their business and which may be justified on making the change as soon as possible, but for the rest of the population the purchase of such items is based on their wants and not their needs, now if this was an isolated case I could let it go but when all their purchases follow the same pattern then you can tell those people will never achieve financial freedom.

One of the problems of our time is the reassessment of one's needs and "habits" that do not correspond to income. More precisely, an attempt to impersonate "more wealthy." I do not want to call myself very wealthy, but I consider myself "middle class". I have several apartments, a car, a land plot 20 km from the capital of the country where I live and other joys of life. It's not too much and not too little. But for example, I don't buy Brioni suits, I don't buy Porsche Panamera, and I don't buy Patek Philippe watches. Although I could buy it. No, I do not argue - these are quality things, but I think they do not suit me in terms of my needs, income, and the ability to maintain and pay for their possession.
Regarding coffee - a perfect example. I also love good coffee, my favorite variety is arabica irgachif, or sidamo. On the one hand, there are a lot of cafes where this type of coffee is prepared. On the other hand, I'm not ready to follow him anywhere, I want to wake up and drink a cup of aromatic coffee
No, of course, I go to the cafe - after all, this is my help to my neighbors, who made a wonderful cafe, invested their strength, money, soul, and I am pleased to support them. But I'm not ready to be the daily "slave of a cup of coffee." My coffee machine brews coffee just as well, and much cheaper
And so in everything - you can really reduce your daily, regular costs for unnecessary acquisitions. No, this does not mean that you have to drink the cheapest coffee, pouring boiling water over yesterday's brewed coffee today - this, of course, is also an extreme. But just like that, regularly paying 2-3-5 times more than you need, this is stupidity and not a reasonable attitude to your money

I think we are going through that phase in our life where we are not responsible with finances and many other things that are important for life. When we enter practical life, where we get married and become the head of a family, that is when it hits our head that what we've been doing throughout our lives was not really the way, and now we have to manage our finances and everything.

Though it's a bit hard at the beginning, we get a hold of everything slowly as we move ahead. I've been through all of it, and I know it can be difficult but I've managed to get myself together and now I can say that I know how to manage my finances.

I try to limit monthly spending by compiling a budget from my income. I feel bad about spending money if it's not for something I don't need because it means I'm using the money I previously allocated for savings. And fortunately, I don't have many installments that will reduce my income so I still have money for important purposes. I'm also not used to buying drinks in cafes or spending money just to buy trendy food because I'm not really interested in it all. Maybe I'm not one of those who follow the trend out there but that's an advantage for me because I can save more to prepare for my future and invest the money in bitcoin.

Everyone has to organize his life properly because other people don't have the responsibility to do it. Likewise with financial planning that must be prepared carefully and correctly, so that financial problems do not put you in difficult conditions, spending money by buying expensive drinks and having dinner at restaurants will be a problem when income and expenses are not balanced.

Many people forget that life is not only for a few months and years, many things must be planned so that our financial capabilities will be better, but unfortunately people don't do things like this for their future. Every individual has responsibility for his finances and life, if he doesn't have a good concept of life then he has to blame himself.