SPENDING MORE THAN YOU EARN - page 7.

Mpamaegbu

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Quote from: KingsDen on April 21, 2023, 06:50:59 PM

Do people actually spend more than they earn? I am yet to understand how it works. If people actually spend more than they earn, the extra money they spend, where does it come from?
Or when they use their savings, it means spending more than they ear.
In the worse scenario, are there people that spend all they earn and go borrowing every month to augment their living?

Yes, there are people who live that way. It's a classical example of living from hand to mouth. I see this scenario with those in my country who earn the bearest of the minimum wage and have a nuclear family of two to four children. The circle of borrowing repeats itself every second week of receipt of salary because what is paid isn't even enough to take care of two people let alone a family of six. However, there are those who earn well to take care of their basic needs but will indulge luxurious living they can't match financially. These ones are foolish as they go a borrowing just to meet up with their affluent cravings.

karmamiu

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Quote from: mvdheuvel1983 on April 24, 2023, 01:20:35 PM

Quote from: odunybiz on April 21, 2023, 02:11:54 PM

👉👉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.

I recall an episode on the Dave Ramsey show where he said, "if you can't pay for something in cash, in full, then you can't afford it- whatever it is." And it hit me. But then again we live an era where debt is glorified, where you can buy some today and have a payment plan for the next six months,
where loan sharks are all of the place calling, texting, and emailing you to tell you, you have so-so and so discount off when you take out a loan. Unfortunately, most people are carried away and fall for it.

It is because most people nowadays are blinded by the fact that they are expecting salary in the next two weeks or a month, and I am also guilty with that fact. Though that also depends on how you manage your own finances as long as it isn't excessive enough to ruin your next six months of life. It's easy to be carried away knowing that you are expecting something and you know that it is within your budget but sometimes I am thinking that if I couldn't recover in the next 3 months then it is not worth my salary sacrifice.

Vaculin

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Winding down.

Quote from: Hamphser on April 21, 2023, 02:30:03 PM

Learn to say “no”

This is something that you should really be minding or have this kind of behavior on which it is really better where you dont make yourself get easily tempted on buying things which you do see around.If its something that is beneficial then go ahead but its not something necessary then its better to skip out and avoid it.There are people who do have that good self control and discipline when it comes to things specially
if they are aware on how much they've been earning.

Spending something or an amount which is more than you do earn will really be putting you on huge debt and would really be having some financial problem which is something
that we do really need to avoid on or having this kind of behavior.

This is the best option to stop yourself from spending. In life, you can’t get everything you want, so you have to prioritize which ones are highly needed and which ones are not. It’s needs over wants actually. And by learning to say no to those who are non-essentials in the first place, you could have saved more than to spend above your means. That way, you will never be force to take debts and just enjoy whatever you can afford in life.

molsewid

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Quote from: Baoo on April 24, 2023, 12:16:25 PM

Well, you have mentioned some useful points OP, the most important tip is the last one ( Learn to say NO ). Regrettably, too many people couldn’t control their desires, they be purchasing unnecessary goods and items without any reason. In my opinion, the main reason of this widespread issue is the negative impact of social media ( specifically ads and influencers) on people who have lack of self control. For me, I would rather save money and invest them in crypto or businesses than waste them on useless stuff. In fact, we have to be completely ready for any sudden surprises and plan for tomorrow. Unfortunately, we don’t know what life is going to bring for us. So the more we have treasures ( like, lands, gold, businesses.. ) , the safer we and our families are.

I agree, I am one of those people who can't say no so easily. We are living in an Asian family, where we all live together and other relatives. There will be some time they will ask you some things that they needed because they can see that you are capable and you will grant their wishes because they are elderly and there where the story starts, that is what I am feeling for years now and also the reason why I don't have a budget for myself.

mvdheuvel1983

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Quote from: odunybiz on April 21, 2023, 02:11:54 PM

👉👉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.

I recall an episode on the Dave Ramsey show where he said, "if you can't pay for something in cash, in full, then you can't afford it- whatever it is." And it hit me. But then again we live an era where debt is glorified, where you can buy some today and have a payment plan for the next six months,
where loan sharks are all of the place calling, texting, and emailing you to tell you, you have so-so and so discount off when you take out a loan. Unfortunately, most people are carried away and fall for it.

Baoo

full member

Activity: 868

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Well, you have mentioned some useful points OP, the most important tip is the last one ( Learn to say NO ). Regrettably, too many people couldn’t control their desires, they be purchasing unnecessary goods and items without any reason. In my opinion, the main reason of this widespread issue is the negative impact of social media ( specifically ads and influencers) on people who have lack of self control. For me, I would rather save money and invest them in crypto or businesses than waste them on useless stuff. In fact, we have to be completely ready for any sudden surprises and plan for tomorrow. Unfortunately, we don’t know what life is going to bring for us. So the more we have treasures ( like, lands, gold, businesses.. ) , the safer we and our families are.

Fesatmas

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Quote from: odunybiz on April 21, 2023, 02:11:54 PM

snip
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.

I have financial management, both from liabilities, investments, emergency funds, basic needs funds, insurance, wishes and other small things that are made for health in my financial flow I design it well even I offer that thought to other people and they agree, but it's bad in the middle of the road when something unexpected exceeds the cost that was prepared to make me look bad in managing my own finances, and it's true that it's only easy to say and plan while implementing is a very difficult thing because it's a real form which is far from what we think.
But it must really happen on the way to better financial stability in the future.

cafee_orange

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I think your writing is very meaningful for anyone who reads it, in my opinion this is in the form of financial advice for everyone.
Not all desires are needs, and every need must be fulfilled. meaning that if we follow our desires, no amount of money will be enough for us, because desire is a high lifestyle. therefore in my opinion, the solution for a better life is to prioritize needs not wants.

YOSHIE

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Quote from: odunybiz on April 21, 2023, 02:11:54 PM

Take control of your spending today and you’ll reap financial rewards for years to come.

Whatever you say by spending money, shopping and so on, if one person seeks and 5 people eat it, whatever methods, tricks you use, you still lose, expenses are still bigger than income, but if 4 people looking for the economy 5 people eat, then you will get victory in your economy.

If today you get $100 that feeds 5 people, whatever you try to do won't work.

Quote

👉👉Create a Budget (or Improve Your Existing Budget)

Will not work if into your life as I said above.

Quote

👉👉Use cash only

If you are alone, but if your responsibility is 5 people in your family, it will not work.

Quote

👉👉Shopping with a list

If you are alone, if more than one 5 people, automatically you need 4 more lists to be spent.

Quote

👉👉Control your grocery list[/b]

What about other people, for whom you are responsible.

Quote

👉👉Learn to say “no”

Are you able to refuse requests that you are responsible for such as: wife and children.

The methods and tricks you do are fine, if you are alone, but if you have 5+ responsibilities in vain, they never work.

tabas

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Quote from: karmamiu on April 24, 2023, 12:07:33 AM

Yes once in a while it is never wrong to treat yourself. It is not as if you are torturing your self and act cruel towards your own health. Indeed is never bad but doing it also in moderation and knowing how much your allocated budget can also help. You must know when to act accordingly to your desire and know when to stop if you feel like it is already overly excessive. Money will come and go as they say, and being a hard worker is also a skill but it's not enough if you wanted to achieve financial stability that is why one must have to learn financial awareness and not only practice it but literally apply it.

It's understandable that life is tough for some and even eating out is being controlled. But then, you have to understand your situation if it's doable or not because just to have some of these tips being followed then it means that you're aware of your current situation.

Quote from: Fredomago on April 24, 2023, 02:23:56 AM

Un-plan expenses most of the time is higher than the usual, I agree that paying for those extra expenses if being calculated will surprise you, it will apply the title of this post that you spend more than what you can earn, just imagine if you have your monthly expenses and you budget everything to make sure that you'll be able to cover your needs but there's time that you will spend money that's not included with your budget same with the way you said, eating out or treating someone is not part of your monthly expenses its additional that will ruined your finances.

Yes, we do spend more than we intend to save and earn because of those unplanned expenses. And that's why with such eating out that's not part of the budget and not planned, you'll see how much it will cost you if it's always done surprisingly. No one shall stop you from treating yourself but if it's too much to take and with inflation and cost of living in your area is also increasing, you'll really feel that.

jokers10

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Quote from: Fredomago on April 24, 2023, 02:23:56 AM

Un-plan expenses most of the time is higher than the usual, I agree that paying for those extra expenses if being calculated will surprise you, it will apply the title of this post that you spend more than what you can earn, just imagine if you have your monthly expenses and you budget everything to make sure that you'll be able to cover your needs but there's time that you will spend money that's not included with your budget same with the way you said, eating out or treating someone is not part of your monthly expenses its additional that will ruined your finances.

If someone faces with that he has problems with planning unexpected expenses they should use another strategy. I know some people like that: they have on their bank card only what they can spend that day, they add money to it each day and that's why they don't unexpectedly spend more than they have. For bigger expenses they leave 10% of income so they have enough if something really important needed. So it is a way of personal finance organizing: if you feel that you have problems then first idea is to try a different system which can be more suitable for you. Sometimes it helps.

GigaBit

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Quote from: Pierre 2 on April 24, 2023, 02:22:36 AM

I think main thing to do is to focus on things you need, not things you own. If you start accumulating things you want you will quickly lose your funds. But if you focus on necessary food and clothing you will realize most of things you buy is pretty much unnecessary. Its about consumption discipline. When I first started working I was spending lot more than what I was supposed to. It melted my funds so I couldn't buy enough Bitcoin to profit.

I agree with you. Basically, if we can't match our expenses with our income, we have no choice but to carry the debt burden. What we buy in our daily life Have you ever thought that we could have done without buying some things? We can be happy without some things. We can not feel these things immediately but when come to us we are unable to do something. In a practical life, we should all control everything. Especially in terms of cost. Once I spent a lot of money but I don't get it when I need it. So before spending, the income side should be well tuned.

GeorgeJohn

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Enjoy 500% bonus + 70 FS

Quote from: Unbunplease on April 21, 2023, 06:22:44 PM

Affordable credit allows one to spend more than one earns, but this is a very big trap. Small loans - if you don't stop in time - lead to big loans, and, as a consequence, to credit bondage. So you should try to restrain your desires, and live within your means, otherwise you may not notice how you lose everything.

the people that always been the victim of starting with small loans and graduates with giants loans, is that, its people who don't know how to plan or strategies for something else, when you are living the life of balance in any thing you do after some weeks intervals before you can as well sort yourself out, so from my perspective it's not encouraging the way I have seen it and they way I have microscope it, so therefore I believe if we are giving the privilege of taking things or our needs on credit it will make us not to have a future plans that can be executed due to we cannot give accounts of we have generated so far.

Fredomago

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Quote from: tabas on April 23, 2023, 06:48:23 PM

Quote from: loopes on April 22, 2023, 05:05:18 PM

Quote from: tabas on April 21, 2023, 06:31:12 PM

Quote from: odunybiz on April 21, 2023, 02:11:54 PM

👉👉Shopping with a list
👉👉Control your grocery list

I have something to add that's related to these two and that is before you go shopping, eat before you go. Yes, a very simple thing and reminder to eat before you shop. Because with all of those tasty and craving food that you'll see in the grocery store, you'll not be able to control your hunger and crave from those foods you'll see. That's why with this simple tip, you'll get to save eating out and just to be frugal, it's okay to eat outside but do it when you've got some spare or you think that you're not going to hit your budget when you do. And to have no budget constraints, if you can't help yourself but to spend more then the main solution is to earn more.

I feel what you have suggested. While we are hungry, we are potentially looking most of food on grocery store will look so delicious then coming the desire to buy anythings we are looking at. This small tip will always usefull to control what our grocery list to buy, so we do not spend more money for the things that we do not plan before. it may be small expenditure but if this case is done frequently so it will take a big enough amount of our budget.

I have been always the assigned guy to do our groceries and if I want to eat at home, I'll eat at home but whenever I forget to eat at home before going to the store. That's what I can't attain to avoid. Yeah, I eat outside whenever I'm hungry and that crave is never gone but it's mostly just done because I'm hungry and I spend more than the allocated budget that's given to me. That's why it's a small tip and act that everyone probably haven't noticed and when you sum up all of those eating out expenses, you'll be surprised on how much they've been when you do the calculations. I know sometimes we have to treat ourselves and eat outside when you think you deserve it but, sometimes it's also becoming too much.

Un-plan expenses most of the time is higher than the usual, I agree that paying for those extra expenses if being calculated will surprise you, it will apply the title of this post that you spend more than what you can earn, just imagine if you have your monthly expenses and you budget everything to make sure that you'll be able to cover your needs but there's time that you will spend money that's not included with your budget same with the way you said, eating out or treating someone is not part of your monthly expenses its additional that will ruined your finances.

Pierre 2

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I think main thing to do is to focus on things you need, not things you own. If you start accumulating things you want you will quickly lose your funds. But if you focus on necessary food and clothing you will realize most of things you buy is pretty much unnecessary. Its about consumption discipline. When I first started working I was spending lot more than what I was supposed to. It melted my funds so I couldn't buy enough Bitcoin to profit.

Antotena

sr. member

Activity: 490

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Life doesn't have a manual but when it comes to spending, you have to be very minded on how money are spent especially when your spending quota is bigger than what you earn. If you don't have a family and still young, your priorities should be able to earn more and spend less and if you have more resources to start business, do it. You will enjoy every decision you take while doing this financial descipline.

karmamiu

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Quote from: tabas on April 23, 2023, 06:48:23 PM

Quote from: loopes on April 22, 2023, 05:05:18 PM

Quote from: tabas on April 21, 2023, 06:31:12 PM

Quote from: odunybiz on April 21, 2023, 02:11:54 PM

👉👉Shopping with a list
👉👉Control your grocery list

I have something to add that's related to these two and that is before you go shopping, eat before you go. Yes, a very simple thing and reminder to eat before you shop. Because with all of those tasty and craving food that you'll see in the grocery store, you'll not be able to control your hunger and crave from those foods you'll see. That's why with this simple tip, you'll get to save eating out and just to be frugal, it's okay to eat outside but do it when you've got some spare or you think that you're not going to hit your budget when you do. And to have no budget constraints, if you can't help yourself but to spend more then the main solution is to earn more.

I feel what you have suggested. While we are hungry, we are potentially looking most of food on grocery store will look so delicious then coming the desire to buy anythings we are looking at. This small tip will always usefull to control what our grocery list to buy, so we do not spend more money for the things that we do not plan before. it may be small expenditure but if this case is done frequently so it will take a big enough amount of our budget.

I have been always the assigned guy to do our groceries and if I want to eat at home, I'll eat at home but whenever I forget to eat at home before going to the store. That's what I can't attain to avoid. Yeah, I eat outside whenever I'm hungry and that crave is never gone but it's mostly just done because I'm hungry and I spend more than the allocated budget that's given to me. That's why it's a small tip and act that everyone probably haven't noticed and when you sum up all of those eating out expenses, you'll be surprised on how much they've been when you do the calculations. I know sometimes we have to treat ourselves and eat outside when you think you deserve it but, sometimes it's also becoming too much.

Yes once in a while it is never wrong to treat yourself. It is not as if you are torturing your self and act cruel towards your own health. Indeed is never bad but doing it also in moderation and knowing how much your allocated budget can also help. You must know when to act accordingly to your desire and know when to stop if you feel like it is already overly excessive. Money will come and go as they say, and being a hard worker is also a skill but it's not enough if you wanted to achieve financial stability that is why one must have to learn financial awareness and not only practice it but literally apply it.

tabas

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Activity: 3234

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Quote from: loopes on April 22, 2023, 05:05:18 PM

Quote from: tabas on April 21, 2023, 06:31:12 PM

Quote from: odunybiz on April 21, 2023, 02:11:54 PM

👉👉Shopping with a list
👉👉Control your grocery list

I have something to add that's related to these two and that is before you go shopping, eat before you go. Yes, a very simple thing and reminder to eat before you shop. Because with all of those tasty and craving food that you'll see in the grocery store, you'll not be able to control your hunger and crave from those foods you'll see. That's why with this simple tip, you'll get to save eating out and just to be frugal, it's okay to eat outside but do it when you've got some spare or you think that you're not going to hit your budget when you do. And to have no budget constraints, if you can't help yourself but to spend more then the main solution is to earn more.

I feel what you have suggested. While we are hungry, we are potentially looking most of food on grocery store will look so delicious then coming the desire to buy anythings we are looking at. This small tip will always usefull to control what our grocery list to buy, so we do not spend more money for the things that we do not plan before. it may be small expenditure but if this case is done frequently so it will take a big enough amount of our budget.

I have been always the assigned guy to do our groceries and if I want to eat at home, I'll eat at home but whenever I forget to eat at home before going to the store. That's what I can't attain to avoid. Yeah, I eat outside whenever I'm hungry and that crave is never gone but it's mostly just done because I'm hungry and I spend more than the allocated budget that's given to me. That's why it's a small tip and act that everyone probably haven't noticed and when you sum up all of those eating out expenses, you'll be surprised on how much they've been when you do the calculations. I know sometimes we have to treat ourselves and eat outside when you think you deserve it but, sometimes it's also becoming too much.

Unbunplease

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Quote from: EdenHazard on April 23, 2023, 05:58:42 PM

No matter what kind type of money you bring in your pocket as long as you can't manage really well on what you really need and what you want in living your life , i mean those people who have so much money in the bank tend to strictly spend their money compared to those who have less money in the bank tend to spend more due lack of financial literacy.

So yeah those who spend more than what they earn havent through much in living the life so they would always feel curious about stuff that they haven't owned.

Government policy today is aimed at encouraging people to spend more than they earn. Mortgages, affordable loans, fast money. Buy now and get a discount (and people buy on credit - even if they don't really need the product). A vacation trip - when a person spends in a month of vacation all the money they saved up for a whole year. The state benefits from credit bondage. Anything can be done with such people, and they will not be able to resist.

EdenHazard

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Quote from: Kasabus on April 23, 2023, 05:34:01 PM

Quote from: Webetcoins on April 23, 2023, 07:01:10 AM

I definitely agree with all other points except for the card one. I'm also a family person and we go shopping as well, and to be honest, having only cash doesn't really stop you from spending more unless you have already taken all the other steps like having a specific list and sticking to it or not buying unnecessary things.

Having a budget for everything is probably the most useful one, and sticking to the budget is very important. You can't add or subtract from a budget allocated for one thing to another or everything will start getting out of proportion.

Bringing cash does not guarantee that you will never overspend, and that you will stick to your budget. There’s still high chances that you might not stick to your budget list because you find other items more cheaper and useful at that moment. At the end of the day, your budget list becomes ineffective. So you have to spend another cash just to secure other items that were missed to buy which means you already spend more than your budget. If that will continue and you never change your style, you might run out of budget and resort into taking loans. And once you start taking loans, believe me it’s always hard to get out from it and find yourself stuck on it.

No matter what kind type of money you bring in your pocket as long as you can't manage really well on what you really need and what you want in living your life , i mean those people who have so much money in the bank tend to strictly spend their money compared to those who have less money in the bank tend to spend more due lack of financial literacy.

So yeah those who spend more than what they earn havent through much in living the life so they would always feel curious about stuff that they haven't owned.

Topic: SPENDING MORE THAN YOU EARN - page 7. (Read 1398 times)