Topic: SPENDING MORE THAN YOU EARN (Read 1387 times)

Nowadays we find very many people who spend more than they get because they follow a lifestyle that does not match the income they get, so this is the biggest mistake we make in everyday life, if an item we want but our money is limited then never buy the item and use the money first for more important purposes, But if indeed we really need these items, there is nothing wrong with us buying, our lifestyle must be adjusted because the current economy is sometimes not as we expected.

Yes. It is common and is one of marketing strategies also in terms of marketing. I think that's very natural, especially with the current conditions where people want to shop in a complete and comfortable place, but as the OP say, we also have the power and effort to control and align which financial priorities are more important and urgent or not yet urgent.

You are right with this. This is part of their advertising means to attract customers but one can still avoid most of this temptation if one make a good plan for his money and lifestyles. I'm not expecting a hustler to visit restaurants for all day meal, this may be so expensive for him/her. Shopping with list and making a budget for your monthly income can save you from any attractive design place on any goods and services.

Base on one of my recent post titled"Common Money Mistakes Anyone Can Make"(https://bitcointalksearch.org/topic/m.62062701). One of the serious point there is SPENDING MORE THAN YOU EARN. I believe this should be discussed as a separate topic as it's a very crucial part of ones financial life. Spending more than you earn make ones keeps accumulating debt from expenditure before getting income. This isn't good for ones financial life. With this you hardly save money but keep accumulating debt. It’s better to avoid debt if you can. That way you’ll avoid paying interest on what you owe. Below are ways one can easily stop spending more than you earn:

👉👉Create a Budget (or Improve Your Existing Budget)
99% of the trouble that people have with money isn’t that there isn’t enough of it but that there is no plan for it once you actually get it. Your budget (either weekly or monthly) should consider your income and your expenditure. Guide your spendings for the week or month with the budget made. This might be hard at first, but having that extra cash in hand, definitely worth the effort.

👉👉Use cash only
Shopping using card look more convenient and most time encourages you to buy unnecessary things even out of plans. I really observed I spend more money(even more than 20% of my salary) on airtime only any month I load airtime directly from my bank account through USSD. This is so convenient that immediately I exhausted my airtime when calling, I just dial the USSD code to get another. This doesn't help you financially. You get to stop. Knowing your Credit and Debit Card Number offhand isn't helpful for you. It makes you shop unnecessarily online. Using cash-only envelope budgeting system can help you minimize your spendings and sticks to budget.

👉👉Shopping with a list
This is a lifesaver and a game changer. It’s so simple! Literally, all you have to do is write down what you need in the house that week. Make the list, and stick to it. If you only need to get chicken and vegetables and some pasta at the house for the week, there’s no reason for you to be going to the snack food section. It’s a trap!

👉👉Control your grocery list
Having meal plan can help you minimize your monthly expenditure. This helps you to stop spending money unnecessarily on food without depriving yourself of your favorite treats. This will also help you to plan your week without any worries and give you the insight of all what you need from the store.  

👉👉Learn to say “no”
Not all goods worth buying at the moment. Although ads may be tempting but one should learn to go off any unnecessary items.


Reference: https://www.pnc.com/insights/personal-finance/save/how-to-stop-spending-money.html

CONCLUSION
It's good for one to satisfy his/her desire when making purchase of items but this shouldn't cause issues in ones lifestyle. The key to stop spending too much money is to create better money habits in your daily life. But I know that’s easier said than done. Putting one or all of these ideas into action, helps in building a healthy spending habit. Take control of your spending today and you’ll reap financial rewards for years to come.

Lots of people spend more than they earn, this can only continue until they can not get any new line of credit though. It’s a big problem for a lot of people, the cost of living has gone up so much that low earners don’t have any other choice after exhausting cost cutting measures. All I can say is I hope the cost of living decreases soon & life can be more comfortable for people again.

I got the simplest tip for bill payment priorities, not getting into trouble with late or unpaid bills.   Write down all the big bills you have no choice in, usually this involves tax and rent.   This is money you receive in pay but which honestly speaking is never yours to spend, its purely in your grasp just days or weeks then its gone.  If you dont pay tax you will goto jail and property rent or costs cannot be avoided easily, this also is money gone just days after you receive it.
   If you mark off this money which is never your own from  monthly income it will immediately give a far more realistic actual real money spending budget.   Many at this point might realize they have very little cash spare.   Its not always the best view but stay true to the real figures, dont be tempted to choose debt and even more cost from interest payment just accept the monthly bill has to be taken out of actual cash available.   If you have near zero then consider ways to either pay less in the bill or increase income but stay realistic till a change is possible.

Even though they can repay their debts, their financial planning will progress at a snail's pace. I still believe that debt incurred for consumptive activities will only add to our burdens, and such habits will become a time bomb that can trigger stress if the job we love unexpectedly disappears.

You are right with this. This is part of their advertising means to attract customers but one can still avoid most of this temptation if one make a good plan for his money and lifestyles. I'm not expecting a hustler to visit restaurants for all day meal, this may be so expensive for him/her. Shopping with list and making a budget for your monthly income can save you from any attractive design place on any goods and services.

Good tips, the temptation to spend money at this time is very large compared to when I was in college or at the start of work, namely 10 years ago, now malls are designed to be very attractive so that it makes us want to shop, restaurants are also designed to make us able to last a long time and try all the available menus so as to make finances we can get screwed.

It's good for one to satisfy his/her desire when making purchase of items but this shouldn't cause issues in ones lifestyle. The key to stop spending too much money is to create better money habits in your daily life. But I know that’s easier said than done.

Putting one or all of these ideas into action, helps in building a healthy spending habit. Take control of your spending today and you’ll reap financial rewards for years to come.

Others will say that you should find another source of income so that your budget will be enough, like you don't need to budget now or cut some food just to keep up the budget. Just imagine you don't need to set a certain budget for food and you can spend it on whatever you want to cook (except eating at fancy restaurants). It can make you feel free. That is really what I've achieved now so that my family can eat healthy foods, but again, having another source of income is difficult, but we should keep looking.

👉👉Use cash only

Are you really going to do that?  I think that this topic has returned you with some positivity in making some financial decisions that can be considered relatively important. 
In general, there is nothing better than arranging priorities to organize the spending process to meet daily needs, especially in cases where income sources are limited.  On the other hand, in the meantime, sources of income must be diversified to liberate the spending process and get out of that limited budget between income and spending.

This actually gives rise to an individual with a strong debtor character, leading people to become dependent on debt. For some, avoiding debt seems impossible due to their insatiable needs that cannot be met solely by their salaries. However, it is worth reconsidering: until when should someone be in debt? Is it until death?

Living a simple life and enjoying the process of growth stimulates adrenaline more than taking shortcuts by accumulating debt just to fulfill our desires for fun. Many people underestimate the burden of debt because they have a job and the certainty of receiving their monthly salary.

Even though they can repay their debts, their financial planning will progress at a snail's pace. I still believe that debt incurred for consumptive activities will only add to our burdens, and such habits will become a time bomb that can trigger stress if the job we love unexpectedly disappears.

I will make a monthly budget and a list like you. And a shopping list for food items we need for survival. Not types of food that are not needed and are more expensive. And I do say no for things that I would buy in the past. Things like DVDs and lottery tickets I do not purchase anymore

..but there are also who borrows money for no reason for the sake of getting their accounts in good credit scores, and it is also not a bad thing as long as they can pay it before their due dates