How to spend money determines whether you can avoid unnecessary problems

[blockman]

I think that every person who earns an income should save. But when one's income increases, one stops saving and wants to buy the things one wants. He even wants to buy things he does not need and spend what he earns. The important point to be considered here is this. This spending should not continue continuously. In other words, even if he does not save for a while, he should continue to save again later.

We have to save even if you don't like the idea of saving that in the bank, you need to practice saving. It is not just all about saving money in the bank but the activity of saving is what you're embedding to yourself. But there must be a reason why you save. Either to buy something in the future but it's a low-key reason because many savers today are saving to invest.

or if you feel you are not comfortable depositing your extra funds in the bank, you can opt to buy tangible assets and will serve as investments. like precious metals, real-estate and other assets that you think of value and has the potential to further increase its market value.

Yeah, those are investments and assets that we can convert our money/cash into a better and more valuable thing. That's what it means about saving to invest.
You buy those things if you're able to buy them although real estate is really requiring higher capital for it, why not if you can afford it right? As long as you've got the capital to start with and that's what you have saved for. The value of it is increasing on a yearly basis as long as there's no bubble setup that's being done in your area.

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[Y3shot]

Please let me clarify first: anyone who is extremely poor or wealthy is not included in this discussion. Only those who are employed with steady income, some savings and spare time will find this topic useful. I guess most of us are doing fine now but financially we have to face one common problem: how to spend money.  This issue leads to many consequences if not handled properly. Here I would not start any broad and subjective agruement. To deliver my message clearly, I am using some specific examples to elaborate. For example, a lot of peole complain that their income is not enough to cover their daily expenses so they can't save much money while...they spend seven bucks on a cup of coffee almost every morning, throw a hundred dollars on some gym membership cards but never show up training, have dinner with some random girl in an expensive restaurant, buy drinks in bars and waste hundreds of dollars... The list goes on and on. If you live this kind of lifestyle and at the end of months, you are running out of money or can't pay the mortgages, whose fault is this ? I can not provide any statisitics but I am sure that many people have fallen in the trap and can not get out.  I hope you are not one of them.

Lack of planning,  impulse spending and proper planning are some major financial mistakes most persons make. We keep trying to secure a better future especially with the rate at which the economy is dwindling and unstable, but that will not be possible if anyone will be so unwise  to continue living in a frivolous pattern. It's one thing to keep working hard to make money and another thing to be discipline enough to keep and maintain wealth.

[lixer]

Lifestyle change is a big problem that is found with most of the people. When does this happen? Mostly it happens when a person gets into a better position earning $1500 from $700 in the previous month. This gives him the choice to spend. Here most of them doesn't follow strict guidelines and end up borrowing at the month end. In some cases, they manage everything within it, but the savings will be the same as when he earned $700. There is nothing good or there is no room for improvement.

It's not easy to manage your finances, especially if you are not disciplined in general. A person who does everything in a way that seems like he is just getting it off his shoulders and doesn't really care, such a person will do the same with their finances, they don't care where the money is going, they don't try to have more savings because they also don't care about the future and the consequences they might face if they don't have a job some day in future.

That's why, it's always important to take everything seriously, and when it comes to money, if you are earning well, you shouldn't be careless with the money because you are privileged to have that because there are people in the world who sleep on the streets and barely get to eat a single meal every day.

[MFahad]

Unnecessary spending has become a bad habit in our community. People want to show off how rich they are. They think this shows their capability and ability to do whatever they want, but they end up in debt and broke. If your monthly expense is $40,000, then you need to have sources that can bear this consumption rate. People wanted to spend money on fancy things until their pockets were empty.

It almost depends on person affordability as poor people will never choose to buy branded clothes and shoes and they have faced problems therefore they never buy unnecessary things which just cause money wasting.

Whereas those who have lots of money will show themselves wealthy and they thing that there is difference of only branded clothes and shoes between wealthy and poor people which is not true because there are lots of wealthy individuals who use their money with planning and never waste any amount in those materials which they don't need.

We should reduce our expenses because if wo don't eliminate the Babbitt of using money more than our earning then one day we will have no money and will be in search of opportunity to at least earn to cover food expenses.

[Xcode7]

Please let me clarify first: anyone who is extremely poor or wealthy is not included in this discussion. Only those who are employed with steady income, some savings and spare time will find this topic useful. I guess most of us are doing fine now but financially we have to face one common problem: how to spend money.  This issue leads to many consequences if not handled properly. Here I would not start any broad and subjective agruement. To deliver my message clearly, I am using some specific examples to elaborate. For example, a lot of peole complain that their income is not enough to cover their daily expenses so they can't save much money while...they spend seven bucks on a cup of coffee almost every morning, throw a hundred dollars on some gym membership cards but never show up training, have dinner with some random girl in an expensive restaurant, buy drinks in bars and waste hundreds of dollars... The list goes on and on. If you live this kind of lifestyle and at the end of months, you are running out of money or can't pay the mortgages, whose fault is this ? I can not provide any statisitics but I am sure that many people have fallen in the trap and can not get out.  I hope you are not one of them.

Lack of planning,  impulse spending and proper planning are some major financial mistakes most persons make. We keep trying to secure a better future especially with the rate at which the economy is dwindling and unstable, but that will not be possible if anyone will be so unwise  to continue living in a frivolous pattern. It's one thing to keep working hard to make money and another thing to be discipline enough to keep and maintain wealth.

Working hard to earn more money is indeed a solution, but it will not last if our pattern is still wrong in managing finances, especially in terms of shopping for goods for life, because there are two things that must be fulfilled in this life, there are desires and there are also needs, so we have to be smart in prioritizing things.
And the desires that fall into the lifestyle category are also quite influential on our economic stability because not everyone can set lifestyle standards such as the money they have, so these are several influential things that we must be able to control.

[Fara Chan]

Lack of planning,  impulse spending and proper planning are some major financial mistakes most persons make. We keep trying to secure a better future especially with the rate at which the economy is dwindling and unstable, but that will not be possible if anyone will be so unwise  to continue living in a frivolous pattern. It's one thing to keep working hard to make money and another thing to be discipline enough to keep and maintain wealth.

Those who want to work hard and want to maintain their own wealth are people whose lives remain disciplined in how they use their time and also in how they use their finances on a daily basis. Because anyone can see the condition of people who like to live carelessly and there are no good examples that we can take from these people except to forget them and build ourselves better. The overall economic condition has not really improved so there is no reason for anyone not to work if we still really want to live safely and without difficulties.

[dothebeats]

Lack of planning,  impulse spending and proper planning are some major financial mistakes most persons make. We keep trying to secure a better future especially with the rate at which the economy is dwindling and unstable, but that will not be possible if anyone will be so unwise  to continue living in a frivolous pattern. It's one thing to keep working hard to make money and another thing to be discipline enough to keep and maintain wealth.

Those who want to work hard and want to maintain their own wealth are people whose lives remain disciplined in how they use their time and also in how they use their finances on a daily basis. Because anyone can see the condition of people who like to live carelessly and there are no good examples that we can take from these people except to forget them and build ourselves better. The overall economic condition has not really improved so there is no reason for anyone not to work if we still really want to live safely and without difficulties.

I agree with you, if we want to be successful then we obviously have to work for it. We cannot expect for opportunities to come to us and just immediately change our lives for the better, we have to make our own efforts, apply changes to ourselves, and just be better and constantly learn. Moreover, if we want to be successful then we should surround ourselves with people who have the same goals and are successful as well, we cannot expect to learn and get something from people who have the opposite goals and mindset, who settle for less and what they have. Growth will only come if we have the drive to do so.

[|MINER|]

Every man should be aware of his own life.  Apathy brings life to ruin.  Income should be spent wisely.  If the income is 100$ and if the expenses are 110$ then there will be a crisis in life.  And if the life of a low-income person is chaotic, then he himself will suffer and the people associated with him will also suffer.  A lower middle class will become conscious.  Why just the lower middle class?  People of all professions should be aware of their lives.  One should use their earned money properly.  And it should be saved for the future so that if any disaster happens in life, it can be recovered with the money saved.

[DVlog]

Unnecessary spending has become a bad habit in our community. People want to show off how rich they are. They think this shows their capability and ability to do whatever they want, but they end up in debt and broke. If your monthly expense is $40,000, then you need to have sources that can bear this consumption rate. People wanted to spend money on fancy things until their pockets were empty.

It almost depends on person affordability as poor people will never choose to buy branded clothes and shoes and they have faced problems therefore they never buy unnecessary things which just cause money wasting.

Whereas those who have lots of money will show themselves wealthy and they thing that there is difference of only branded clothes and shoes between wealthy and poor people which is not true because there are lots of wealthy individuals who use their money with planning and never waste any amount in those materials which they don't need.

We should reduce our expenses because if wo don't eliminate the Babbitt of using money more than our earning then one day we will have no money and will be in search of opportunity to at least earn to cover food expenses.

Then you won't believe me if I say poor people do the stupidest thing when they get some extra money. Do you ever think of why poor people remain poor when rich people increase their wealth every second? 

When poor people got some fortune and some extra cash they got it hand they tried to fulfill their desire. Some wanted to go to a fancy restaurant, purchasing something that is liability, buy some new clothes, decorate their home etc. None of this can generate money for them when that money can be invested in some assets. Rich people buy assets and let those assets pay for their desires.

This is not because poor people do not want to increase their income. Their lack of knowledge and fear of investment made them do these things.

[romero121]

Unnecessary spending has become a bad habit in our community. People want to show off how rich they are. They think this shows their capability and ability to do whatever they want, but they end up in debt and broke. If your monthly expense is $40,000, then you need to have sources that can bear this consumption rate. People wanted to spend money on fancy things until their pockets were empty.

It almost depends on person affordability as poor people will never choose to buy branded clothes and shoes and they have faced problems therefore they never buy unnecessary things which just cause money wasting.

Whereas those who have lots of money will show themselves wealthy and they thing that there is difference of only branded clothes and shoes between wealthy and poor people which is not true because there are lots of wealthy individuals who use their money with planning and never waste any amount in those materials which they don't need.

We should reduce our expenses because if wo don't eliminate the Babbitt of using money more than our earning then one day we will have no money and will be in search of opportunity to at least earn to cover food expenses.

Then you won't believe me if I say poor people do the stupidest thing when they get some extra money. Do you ever think of why poor people remain poor when rich people increase their wealth every second? 

When poor people got some fortune and some extra cash they got it hand they tried to fulfill their desire. Some wanted to go to a fancy restaurant, purchasing something that is liability, buy some new clothes, decorate their home etc. None of this can generate money for them when that money can be invested in some assets. Rich people buy assets and let those assets pay for their desires.

This is not because poor people do not want to increase their income. Their lack of knowledge and fear of investment made them do these things.

Poor people lack knowledge on investment and they were agonizing to have something which they've never experienced in life. This is why they just spend here and there and end up with nothing left. Through education this can be easily solved.

Another thing when we talk of poor people, there are people who aren't able to feed themselves for three times a day. With them how to suggest investment. What is more important itself isn't available and in that situation talking of next level of living is really unfair.

First of all savings needs to be encouraged. The education need to be provided on investment and other ways of making the savings better. This is how we can help with betterment of the poor people. Not everyone were able to follow it which is the hard reality.

[DVlog]

Poor people lack knowledge on investment and they were agonizing to have something which they've never experienced in life. This is why they just spend here and there and end up with nothing left. Through education this can be easily solved.

Another thing when we talk of poor people, there are people who aren't able to feed themselves for three times a day. With them how to suggest investment. What is more important itself isn't available and in that situation talking of next level of living is really unfair.

First of all savings needs to be encouraged. The education need to be provided on investment and other ways of making the savings better. This is how we can help with betterment of the poor people. Not everyone were able to follow it which is the hard reality.

You have raised some valid points but if we don't try to educate ourselves with the basic knowledge of business then it is our failure that we didn't try to exclude ourselves from poverty. Education was not a basic need and was not as inexpensive as it is today in the past. Still, people learn to do business with basic education in the past. If you know the letters and can read and write that is enough for you to be knowledgeable. I know it's not easy for a person who can't feed himself properly but this is not impossible if he has the will to change his life.

Our ambitions in life push us one step further to improve ourselves bit by bit and change our lives. We need to have that willingness to be someone no matter what situation our lives is going through.

[MFahad]

Then you won't believe me if I say poor people do the stupidest thing when they get some extra money. Do you ever think of why poor people remain poor when rich people increase their wealth every second? 

When poor people got some fortune and some extra cash they got it hand they tried to fulfill their desire. Some wanted to go to a fancy restaurant, purchasing something that is liability, buy some new clothes, decorate their home etc. None of this can generate money for them when that money can be invested in some assets. Rich people buy assets and let those assets pay for their desires.

This is not because poor people do not want to increase their income. Their lack of knowledge and fear of investment made them do these things.

Agree with your statement as if you are using money then more money will come to you. The wealthy people are wealthy because they create new way of earning through utilising their own money. Poor people think that if they spend their earning and reward then there will be nothing with them to buy expensive things but they forget that desires can be achieved anytime but once you spend money in useless activities then you will not able to increase your cash.

Sometimes they think that investment is a waste of time but they don't remember that with this investment you can avoid harsh situations, your life will not be burden for you.
May be they are not investing as they wants the happiness of their family to feed them in restaurant and to give them expensive cloths but they can also invest money because after some patience they will be able to give more comfort than this if they wisely invest in wise coin as it will offer them passive income.

[Youngkhngdiddy]

Agree with your statement as if you are using money then more money will come to you. The wealthy people are wealthy because they create new way of earning through utilising their own money. Poor people think that if they spend their earning and reward then there will be nothing with them to buy expensive things but they forget that desires can be achieved anytime but once you spend money in useless activities then you will not able to increase your cash.

Sometimes they think that investment is a waste of time but they don't remember that with this investment you can avoid harsh situations, your life will not be burden for you.
May be they are not investing as they wants the happiness of their family to feed them in restaurant and to give them expensive cloths but they can also invest money because after some patience they will be able to give more comfort than this if they wisely invest in wise coin as it will offer them passive income.

  There’s always this popular saying that says “the rich remain richer while the poor remains poorer”. No one is design to be rich or poor but how well we manage our risk taking. The rich do not hesitate to take risk and as we all know without risk there’s no reward. For anyone who relies only on his salary to survive, without proper utilization of their income will end up living a life of rollercoaster. The misuse of money by some salary earners have made them prisoners of the system. I don’t see the need for an expensive restaurant or expensive clothing or luxurious life if you’re living on a monthly budget.
 The rich will always seize any opportunity that warrant them making more money, because they believe they have the money to try anything new. It’s hardly you see a very wealthy person show off by buying things that’s is not worth buying at a particular time. There’s time for everything, you don’t go about buying unnecessary things while you’re in the building phase of your life. Invest your money, spend wisely on the things that matter. Once you’re able to buy anything twice irrespective of the cost and still be comfortable, then you’re starting to be free from the shackles of poverty.

[DVlog]

Agree with your statement as if you are using money then more money will come to you. The wealthy people are wealthy because they create new way of earning through utilising their own money. Poor people think that if they spend their earning and reward then there will be nothing with them to buy expensive things but they forget that desires can be achieved anytime but once you spend money in useless activities then you will not able to increase your cash.

Sometimes they think that investment is a waste of time but they don't remember that with this investment you can avoid harsh situations, your life will not be burden for you.
May be they are not investing as they wants the happiness of their family to feed them in restaurant and to give them expensive cloths but they can also invest money because after some patience they will be able to give more comfort than this if they wisely invest in wise coin as it will offer them passive income.

Rich people earn more money by using their asssets not money. Your fiat currency is useless as it is losing its PPP power every second. So as long as you are holding your paper cash and not buying any asset like bitcoin, gold, land with it you are not utilizing it.

Poor people don't think investment is a waste of time and they know that rich people increase their wealth by investing money. They don't want to invest their money because they think that if their investment turns negative they will lose their small money as well. Their lack of knowledge about money management let their fear dominate them.

[SmartGold01]

Rich people earn more money by using their asssets not money. Your fiat currency is useless as it is losing its PPP power every second. So as long as you are holding your paper cash and not buying any asset like bitcoin, gold, land with it you are not utilizing it.

Poor people don't think investment is a waste of time and they know that rich people increase their wealth by investing money. They don't want to invest their money because they think that if their investment turns negative they will lose their small money as well. Their lack of knowledge about money management let their fear dominate them.

You are correct from some examples of people around my city shows absolutely results of what you are saying. From op holding money in bank doesn't show any wiseness although it serves as a reserved fund to back up whatever expenses we are making but sometimes we also need to consider putting money in bank or saving money banks doesn't add any value to our income and to our life's rather we can access it at our pleased time. Instead of holding money bank it would ideal investing it is another means to secure more Income whereby the money invested has created another channels of income to our financial status.

Most time cutting down our expenses also positioned us to have some spare reserved funds with us, like what op highlighted and yet couldn't meet up paying our bills while we keep spending in an unnecessary things could either create more lost to us instead of adding. The only way to enjoy money is when it turns to assets by then we can spend some little percentage from the investment that is why today the rich always getting Richer while the poors keeps draining and swimming in adject poverty.

[Biznesmen]

Please let me clarify first: anyone who is extremely poor or wealthy is not included in this discussion. Only those who are employed with steady income, some savings and spare time will find this topic useful. I guess most of us are doing fine now but financially we have to face one common problem: how to spend money.  This issue leads to many consequences if not handled properly. Here I would not start any broad and subjective agruement. To deliver my message clearly, I am using some specific examples to elaborate. For example, a lot of peole complain that their income is not enough to cover their daily expenses so they can't save much money while...they spend seven bucks on a cup of coffee almost every morning, throw a hundred dollars on some gym membership cards but never show up training, have dinner with some random girl in an expensive restaurant, buy drinks in bars and waste hundreds of dollars... The list goes on and on. If you live this kind of lifestyle and at the end of months, you are running out of money or can't pay the mortgages, whose fault is this ? I can not provide any statisitics but I am sure that many people have fallen in the trap and can not get out.  I hope you are not one of them.

I don't believe that having a coffee every morning going on a date with a girl, drinking in a bar and so on are unnecessary actions done to waste money. But it's a part of stress release, enjoyment, etc. Why should we earn money if we can't spend it? You can't judge their life by spending their own money. Spending money is not a bad idea, but spending lavishly is. When we have control over our spending and are aware of where we are spending, then it's controlled spending. Spending on luxury items, great food, and enjoying things is not unnecessary in life. It's part of our lifestyles, and one's necessary is another's unnecessary, so simply put, it's not our business what they are spending on.

[btc78]

Please let me clarify first: anyone who is extremely poor or wealthy is not included in this discussion. Only those who are employed with steady income, some savings and spare time will find this topic useful. I guess most of us are doing fine now but financially we have to face one common problem: how to spend money.  This issue leads to many consequences if not handled properly. Here I would not start any broad and subjective agruement. To deliver my message clearly, I am using some specific examples to elaborate. For example, a lot of peole complain that their income is not enough to cover their daily expenses so they can't save much money while...they spend seven bucks on a cup of coffee almost every morning, throw a hundred dollars on some gym membership cards but never show up training, have dinner with some random girl in an expensive restaurant, buy drinks in bars and waste hundreds of dollars... The list goes on and on. If you live this kind of lifestyle and at the end of months, you are running out of money or can't pay the mortgages, whose fault is this ? I can not provide any statisitics but I am sure that many people have fallen in the trap and can not get out.  I hope you are not one of them.

I don't believe that having a coffee every morning going on a date with a girl, drinking in a bar and so on are unnecessary actions done to waste money. But it's a part of stress release, enjoyment, etc. Why should we earn money if we can't spend it? You can't judge their life by spending their own money. Spending money is not a bad idea, but spending lavishly is. When we have control over our spending and are aware of where we are spending, then it's controlled spending. Spending on luxury items, great food, and enjoying things is not unnecessary in life. It's part of our lifestyles, and one's necessary is another's unnecessary, so simply put, it's not our business what they are spending on.

i see your point and most likely people who have this kind of lifestyle are exaggerating the fact that they have no money so we are in no position to judge them

however i also see op’s point a lot of people often just want to brag on social media it doesn’t matter if they’re not able to pay some bills as long as they have the recent model of iphone so while i do believe that we should be able to spend some money on ourselves, family and friends we should also know when to do that and how to do that responsibly

[Kelward]

Please let me clarify first: anyone who is extremely poor or wealthy is not included in this discussion. Only those who are employed with steady income, some savings and spare time will find this topic useful. I guess most of us are doing fine now but financially we have to face one common problem: how to spend money.  This issue leads to many consequences if not handled properly. Here I would not start any broad and subjective agruement. To deliver my message clearly, I am using some specific examples to elaborate. For example, a lot of peole complain that their income is not enough to cover their daily expenses so they can't save much money while...they spend seven bucks on a cup of coffee almost every morning, throw a hundred dollars on some gym membership cards but never show up training, have dinner with some random girl in an expensive restaurant, buy drinks in bars and waste hundreds of dollars... The list goes on and on. If you live this kind of lifestyle and at the end of months, you are running out of money or can't pay the mortgages, whose fault is this ? I can not provide any statisitics but I am sure that many people have fallen in the trap and can not get out.  I hope you are not one of them.

This goes to show us how financial intelligence and discipline is very important, because without it we'll be complaining at the end of every month. The best approach is to create a budget on how to spend a fixed income and have discipline to stick to it. Without a budget the person might be spending on unnecessary things, which before payday he'll probably be going into dept. And when  income fixed is not even enough for the individual in a month, how will he be able to repay loan, and chances are that the person will keep increasing dept. So financial education is very important for any middle income earner that wants to manage their income well, without running into avoidable depbts.

Making budget for the month's expenditure doesn't mean that ostentatious spendings should be included, people in middle class category can deny themselves of certain luxuries in order not to run into dept that'll become a problem for the them. Although an income earner or someone that makes small income can save towards giving themselves treats once in a while, because all work and no enjoyment is not good for the body. So financial intelligence is the key, backed by discipline to achieving it.

[Promocodeudo]

OP, firstly I am exempted from this list of individuals you mentioned here, but the truth is that these people have made this a habit, trying to advise them, will make you look like, you making decisions for them, people has cultivated that habit of caring less about savings but when they have finally squandered all their finances or go broke they will turn to multinational speakers overnight, despite that there is a saying work without play makes jack a dull boy, this statement didn't direct people to start misbehaving, we should be careful of what we do with our money, let's not allow what we do to control us, this can lead us to regret if we don't do something early, be discipline, don't spend more than you get, in every income of yours make sure you save.

[gunhell16]

Please let me clarify first: anyone who is extremely poor or wealthy is not included in this discussion. Only those who are employed with steady income, some savings and spare time will find this topic useful. I guess most of us are doing fine now but financially we have to face one common problem: how to spend money.  This issue leads to many consequences if not handled properly. Here I would not start any broad and subjective agruement. To deliver my message clearly, I am using some specific examples to elaborate. For example, a lot of peole complain that their income is not enough to cover their daily expenses so they can't save much money while...they spend seven bucks on a cup of coffee almost every morning, throw a hundred dollars on some gym membership cards but never show up training, have dinner with some random girl in an expensive restaurant, buy drinks in bars and waste hundreds of dollars... The list goes on and on. If you live this kind of lifestyle and at the end of months, you are running out of money or can't pay the mortgages, whose fault is this ? I can not provide any statisitics but I am sure that many people have fallen in the trap and can not get out.  I hope you are not one of them.

The question is, does financial management only apply to the people you refer to who are employed around the world? Isn't it? If you are an employed person and you know how to handle the money you earn, no matter how expert you are in handling it, if we ourselves can't discipline ourselves, we're sure you'll be really poor because we spend on things we shouldn't.

And if there are other employees who do that, drink at Starbucks, and enjoy themselves in bars or discos, this is their way to enjoy their lives, and they may reward them for their hard work, and we can't do anything about it because it's their choice, so the consequences will be the ones they will experience for sure and not us.