Topic: SPENDING MORE THAN YOU EARN - page 2. (Read 1387 times)

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.

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.

this matters all here , because if we can provide proper budgeting then there is nothing we need to save our asses for the future because there are so many people that tries to do anything but they missed having a right budget to spend each time or at least daily manner.
only use extra cash if we are in badly needed .

👉👉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.

It's actually not that complicated to set a budget and stick to it either for ourselves or for each person in life. Because those who know income and expenses are each individual or ourselves, not other people so that everyone can certainly make arrangements on a budget for their own life and continue to stick to it if each of us doesn't want to have debt in life. So actually this is not too complicated to think about because when someone knows how much money he can make in his daily life or a week or a month, of course he also knows where the money will be used or spent by himself.

This is why I say that it is not too complicated to think about, even though sometimes some people are also not too easy to do it because maybe some people still can't move on from their own extravagant nature. Even though the unwise attitude in using money and the wasteful nature that exists in each of them is something that can be changed slowly or changed over time if they want to live a better life without making loans in any form in their lives.

I think it is not advisable to spend more than you earn. This can lead to financial difficulties and debt, which can have a long term consequences on your financial stability and well being. When we spend more than we earn, we are essentially leaving beyond our means. It means that we rely on credit and borrowing money to finance our lifestyle which can quickly unsustainable. The interest fees with borrowing money can add up quickly making it even harder to get out of debt. To avoid this kind of problem we need to create a budget and stick with it. If we can track our income and expenses and making sure that we are not spending more than we earn we can avoid this kind of problem. If we find it difficult to do it let us find other ways to be able to increase income to reduce expenses.

In terms of exceeding from what you can afford to the point where you need to lend or loan just to fill what you want, that's something which will really hurt your finances, it's better to keep yourself away from extra expenses as it will allow you to save some from your salaries, though we really can't generalize how things can happen, some are just doing those extra expenses due to the desire of having material things that they really wanted to own, while for some it's just an emergency thing that they need to spend extra to fill something unexpectedly.

Spending more that what have earned is really a bad habit and bad financial mindsets that's why many people are broke because of it. Being contented and being thrift is not a bad thing and buying unnecessary things should not be priority on times like theses wherein we have a high inflation rates. People should practice more NEEDS than WANTS.

We have to be able to control ourselves so we can't waste money. Learn to say no. Sometimes we can't refuse other people's invitations, such as parties and things that waste money. We have to be good at managing our own money. because if we spend money that doesn't match our income then we will work forever until we are old there is no emergency pension fund and someday we will be in trouble in the future do you want that to happen?

Most people experience that expenditure is greater than expenses, this is because many people cannot adjust expenditure, they cannot hold back to buy things that are not yet reached so that sometimes they are in debt, from now we have to stop the bad habits so that they do not owe anymore in the future and expenses can be in accordance with income.

What I mean is that those people who spend more than they earn on their wants. I do know people who are spending more on alcohol and cigarettes than their salary. It is common sense that there are really people who spend more because they have a lower salary, which I am one of it as I am not a rich person. I am also the breadwinner right now, and a lot of my family members are relying on me. Also, it is always a waste of money to spend more if you put it on useless things that you are constantly buying, like alcohol, cigarettes, and expensive clothes, right?

Well, I understand what you say. But not everyone is as lucky as you. There are people who work hard but get very little money and behind them is a whole family counting on those meager wages. Therefore, spending more than they earn is inevitable, even if no one wants to.
I have seen many people work more than 16 hours a day because of the family's burden but still can't afford to take care of their family, let alone buy a new shirt. So don't say that anyone who spends more than they earn is a waste of money or that they are mindless playboys.

Yes. There are people like that. Extra money can be gotten from either tips( if you are the type that works jobs that tip) or probably given by a family member or friend.

I can't really imagine those people who are spending more than they earn; just imagine how much their debts are because you are always caught short, so you have no choice but to borrow money to buy your needs. I am glad that I am not this kind of person because every time I do buy something for myself, I always think twice if it is worth it or not. Even clothes, I rarely buy unless I need a new one. It is really better like this because you won't go into debt and think a lot about how to pay it.

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.