Topic: SPENDING MORE THAN YOU EARN - page 9. (Read 1398 times)

That is why if you can live life free from any debt, then much better so you can live a peaceful life. But let’s just accept the fact that having debts nowadays is already part of living your life, especially if you have a job that pays your debt. But the worst thing about making some debts is you will find it difficult to go out from it. It’s like an addiction that you can’t easily get rid off.

However, the best way to save is to separate first a portion of your income intended to save before you start to spend them. That way, even if you spend all the remaining money, at least your savings is already secured. But to be more effective, learn to budget your money and never spend on things that are never necessary. It’s a matter of your needs over wants. If you can stick to it, you will certainly reward yourself in the future.

Live your life as simple as you can. That way, you can avoid an expensive lifestyle which will only let you spend more than you earn, like those who tend to live like rich people but deeply, they are drown to debt. So you should know when to spend and when not to especially when it comes to your needs over your wants. Also, if you can still recycle those old thing you have and are still good enough to use, then why bother buying something new as it only means spending again on your hard-earned money. Learn to save more than to spend more.

Sometimes you only need common sense to avoid  being in debt. Handle your finances wisely.
Also, if you live simple life as you know you have no means for high-end lifestyle.
Assess your financial capabilities, and don't aim for extravagant things if you can't afford yet.
Remember, you don't need material things to survive on this planet.
There are so many things you will be tempted to own, but ask yourself, "do you really need it?," before you purchase one.

Sometimes, one can't just spend below than one earns. It just not possible and it is dependent on where you live, the type of work you do, educational status, marital status, family responsibilities and civic duties. If you live in a culture where communal living is encourage, you would often find yourself taking responsibilities for extended family members which in the long run puts a strain on your finances. Personally, I feel that spending less than you earn exist only a utopian society.

Aside the cultural factors that may make one spend more than one is earning, there are other economic factors too. When inflation is 100% but your monthly income since the past 5 years remains the same. Tell me, is it going to be possible to spend less? That's not possible even on a budget. This is why we see the debt profile among individual households rising by the day.

Your highlighted point are good, there is something called financial intelligence, and this is a strategy we can use to overcome excessive spending that can lead to borrowing more money or not having savings.

The issue in most countries now is that people's income is not enough to take care of their daily needs, and the recent rise in inflation is robbing people of their income, in my country the minimum wage is not enough to take care of you if you don't have extra income coming from a side hustle, you will live on debt and people are getting trapped into this. Someone called me yesterday he has nothing with him and they need to eat, he is married with 2 children and both husband and wife are working but their income can only take care of them for just a week, how do you now expect them to survive if not on debt? People are getting poorer and this is giving me a great concern

The percentage must have changed this time. Earn $5, you keep $4 for future expenses or investments and $1 for basic needs.

Control is the key. I use to go grocery with my wife and my kid. And my kid just pick up some chocolate bars. Now I can say it's not good to let kids just pick up just about anything and approve it all. Lately, I already said no and just allow my kid to just pick one only. The kid might hate me for this but this is to limit spending more.

It's normal for us to create a shopping list when the items that we want to buy are not a few because there is a tendency that we can forget them if we will only memorize them. This is not enough if we are planning to save money because we can end up picking some more items if we found out that we still have a money left after totaling all the items in our cart. This must be the reason why there is a "Control your grocery list" in the OP's list to make saving more effective.

Awe, that's sweet. Topics like this must have triggered your memory again with your granny, I feel sorry for you but we must move on and we must follow the advice that they gave to us if they want them to be happy wherever they are now.

Making a list is one thing, but abiding by it religiously is another. I know a lot of people who have their budgets planned ahead but still succumb to temptation quite easily. There are lots of those people around who earn good money but can't really work with a budget. A lot upgrades their lifestyles after receiving a higher pay, and that must be avoided as much as possible. It's what ruins them financially, and I guess everything else is ruined when you have this kind of mindset too.

Great list, although self-control is what really makes people successful in being financially independent. 

Number 2 sometimes depends on where you reside. There would be people that would tell ya that you should consider taking a credit card although it is quite risky to have one and get rid of the bad spending habits especially if you really have many wants.

Along with "shopping with a list", also make sure you already had eaten whatever meal of the day you're supposed to eat as it get rids of that unnecessary spending to foods that could have been way cheaper when you already had taken your lunch.

This statement of yours is the conclusion of the whole matter. There is this slang adage we use in my nativity. It goes like this "The mouth that started eating money is committed" This really relates to your statement.
When one becomes acquainted with good things, even aminds scarcity and lack, they will try their best to maintain their status quo, which is one main reason people borrow and live above their present earning.
We see this kind of live in persons whose parents were wealth and cater for them in all means, at a point that the parents are no more, they'll become clueless and eventually squander the fortune left for them by their parents.

We have increases our spending out of control. At past people lived in mud house. Our grandfather was using 2 or 3 clothes and very rarely they bought new shoes or clothes but now we are demanding more than 10 clothes. For every event we want some extra ordinary thing where we spend most of money. Instead of doing a simple launch and dinner we always look for five star hotel and restaurant which has increased our costs to certain limit.

People forgot the phrase "Cut your coat according to your clothes". If we spend our money according to our salary then it will be make our life prosperous And we will not sink under the burden of debt. I am not saying that we should live life like our grandfather Rather, one should not spend more than necessary.

The word finance is really complex in this case, it's expenses, it's that simple, don't get entangled in life or your income.

In fact it's simple math + common sense, you don't need to go five years to college and then apply these simple concepts.

There are many things that you say that are not a linear way of doing things, that is, it is not the only way, it is simple, it works for you, but that does not mean that there are no alternatives.

For example, the use of the TDC, you say no, and it should be the opposite, taking advantage of this mechanism in the correct use can help you obtain an increase in credit, so the point is not to say "don't use the TDC" but to use it correctly.

The TDC depending on the bank if they are paid in a short period of time do not generate interest and I added that one of the best ways to use a TDC is to have the money in the short term to pay them and as I said you do not pay interest, find out the correct use of the TDCs.

Obviously the "error" comes when you use them and you can't pay within 5 days (example).

His conclusion is nothing if not a positive thought and is not based on what he says, I do not understand.

Rescuing something from your OP would be, make a list of priority expenses.

Anyway, look for sites that offer discounts and review which products are not effective in the period of time you make purchases.

This last item is really important and can improve your savings capacity, there are things that are bought and used very little, for example if you buy a product that costs $10 but stays on the shelf for months, I bought a cheaper one based on the presentation, products today come in various presentations, so it may last a month but you only invest $1 so you have $9 to save or spend on other things.

It I just mentioned works in the opposite direction, buying things that we need over a long period of time saves money.

So, that point is basic so that you understand that at the level of basic expenses there are no written rules.

learn to say "no" is very hard to do, specially if your friend asking for your help or anything else and if we say no we will think if we ask for help someday to our friend they will say  "no" too, so that will make we feel scare.but after do that, we will slowly get used to it.

Do the 7-day trick. 

I am a very casual spender, I spend as much as I breathe back in the day, most of the times for things that I want but I wouldn't see any need at least in the foreseeable future. So I employed a little trick a friend of mine told me while we're having a drink.

"If you want to buy something, but are unsure if it's a good purchase, wait for 7 days. If you still want it after 7 days, go for it, if you don't, then steer away from buying it."

It is by no means a life-changing trick but as it stands today, the 7-day trick has helped me avoid a lot of unnecessary purchases, and I continuously use it for purchases that go over a certain dollar amount. So I figured I'd share it here too, could probably change your life more than it did mine.

It is always advised that we should spend based on our earnings and always consider saving before buying our wants. It takes a lot of self-control to do it but we should have the eagerness to discipline ourselves or else, we will end up having financial trouble in the future. We should focus on saving over following our urge to buy unnecessary things if we want to see good results. We should value our hard-earned money by handling our finances wisely because we don't know what could happen in the coming days or even years.

I think this is the truth for most of us, if not spending more than what we earn, most are just making money that is enough for every expenses that they need. Some people's salary is just good to make ends meet since it is hard in these days to budget since inflation is still rising but the wages can't catch up so we end up having less purchasing power. Indeed, we should be able to have a part on our salary to be alloted on emergency fund since this is no doubt helpful to anyone. I think it is hard for some to really just go within what your salary permitted you to spend. But it always takes courage and discipline to master a good financial habit so that you can make a good flow of your salary without compromising your overall lifestyle.

I also want to add this up.

Before you buy something you want, don't buy it instantly, spend a week thinking about it if you should really buy it, after that, you decide. For me, I always end up not buying the things that I wanted because of that, realization and thoughts will come up to you in that period amount of time, and you'll just say to yourself that you don't want it anymore, so you just saved your money getting wasted on something that you'll only want for a short period of time.

Well, the list are awesome and helpful but if someone would be spending more than what they earned then that's the fastest way to get broke while struggling where to pay or buy foods when it's time to shop. Probably they will end up borrowing money and to some people it's a never-ending cycle that they get used to though I don't have a problem with people borrowing money to help them when in needs. But when I see someone just spending money like it's their money in the first place for something that isn't helpful at all like in gambling or for their luxurious lifestyle, then that's it I'm done with them already. It's okay to treat yourself once or twice because you deserve that but don't ever ever borrow/loan money just for your selfish desire it's not going to help you in the end.