SPENDING MORE THAN YOU EARN

[slapper]

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.

Sure, it's a piece of cake to point fingers at folks scraping by, but let's face it: they're up against a colossal, unfair system. Minimum wage? In many places, it's a bad joke, nowhere near enough for a decent life, let alone raising a family.

Time to shift gears! Stop blaming people and start fixing this broken mess. Let's rally for a living wage, basic needs like homes, healthcare, and education. That's when we'll have a tremendous, fair society. Wild, right?

[1715370523]

1715370523

[uneng]

Sure, it's a piece of cake to point fingers at folks scraping by, but let's face it: they're up against a colossal, unfair system. Minimum wage? In many places, it's a bad joke, nowhere near enough for a decent life, let alone raising a family.

Time to shift gears! Stop blaming people and start fixing this broken mess. Let's rally for a living wage, basic needs like homes, healthcare, and education. That's when we'll have a tremendous, fair society. Wild, right?

The best you can do is to take care your own life, doing the best for yourself and your family. Forget collective causes which will demand hundreds of thousands of people to make changes that won't change anything after all, because the ones at leadership positions will always be corrupted to keep the currently unfair system going on (that is how they keep themselves at leadership positions, at first place).

We, as independent individuals can change nothing for real. All the promises you hear about a fair society are lies, because humans aren't fair on their subverted nature. They will always put their personal interests above the interests of everyone else inside the society.

The fools who believe on these empty promises and wake up to reality later are the ones who suffer the most. Avoid it for your own good.

[CryptoHeadlineNews]

In addition to the beautiful list O.P. just explain above, I will like to add mine that another way to control how much we spend is by stopping the habit of always trying to impress people whenever we find ourselves in the crowd. Because  I have seen many guys fall into this category, whereby in the process of trying to impress a lady they just toast and she agreed to on a date with him, they don't mind spending their last cash as a show of love.
Secondly, another way to reduce how much we spend is by trying to inculcate the habit of privacy, as it's not everybody who should know when you have funds or not.

[cydrix]

All of your thoughts are valid, but the second one—the one about using only cash—is partially unacceptable, but it depends on the individual. Going over the budget is presumed to be something you chose to do on purpose as having a shopping list is enough to ensure you only spend what you have written down to acquire. Unless, of course, you do not have a budget to deal with, which is the subject of your first point. Therefore, when a person satisfies the other criteria you listed, they would still go for their intended amount to spend, whether they pay with cash or a card; exceeding that limit because they are paying with a card is a conscious choice.

[Fredomago]

In addition to the beautiful list O.P. just explain above, I will like to add mine that another way to control how much we spend is by stopping the habit of always trying to impress people whenever we find ourselves in the crowd. Because  I have seen many guys fall into this category, whereby in the process of trying to impress a lady they just toast and she agreed to on a date with him, they don't mind spending their last cash as a show of love.

This one fall to unexpected expense which really common to impress someone, I agree that if you will manage to avoid this kind of spending, you'll be able to save a lot, something that really needs to be control, not exactly only for impressing opposite sex but also to impress someone that you are already in a good place in terms of financial capabilities.

Secondly, another way to reduce how much we spend is by trying to inculcate the habit of privacy, as it's not everybody who should know when you have funds or not.

Precisely, better to be quiet if you have money and not to let everyone knows that you are capable of treating them if someone will ask for that kind of favors.

[Mpamaegbu]

~snipped~

Sure, it's a piece of cake to point fingers at folks scraping by, but let's face it: they're up against a colossal, unfair system.

I'm lost at your comment because I didn't see anywhere I finger pointed at folks scrapping for their daily living. I only made my observation in support of the happenstance that there are people who spend more than they earn and why they do so.

Let me quickly add that there are people whose mindset is not to ever risk anything business wise. They rather relied on government for employment and better inducements. They're career civil servants who are cut out for the 8–5 type of job, either in the private or public service. All they're interested in is just get a paid job and earn salary, that's all. No matter what anyone does to get them into business or self employment to improve their financial standings, they won't hear of it. So, do you waste your sympathy on such people?

[MiF]

Base on one of my recent post titled"Common Money Mistakes Anyone Can Make"(https://bitcointalk.org/index.php?topic=5448160.msg62062701#msg62062701). 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.

I agree on that if we spend less than what we earn we can creat savings, because we can save the money that is not used, maybe it is hard but if we are going to think about the future and we wanted to save maybe we can save a lot. Many people is suffering financial crisis because they don't save they buy unimportant things and they get a loan with interest,

[blockman]

I will like to add mine that another way to control how much we spend is by stopping the habit of always trying to impress people whenever we find ourselves in the crowd. Because  I have seen many guys fall into this category, whereby in the process of trying to impress a lady they just toast and she agreed to on a date with him, they don't mind spending their last cash as a show of love.
Secondly, another way to reduce how much we spend is by trying to inculcate the habit of privacy, as it's not everybody who should know when you have funds or not.

Very well said.
In times of social media and the digital age, we want people to see how lavish we're living but at what cost? At a cost that with our internal problems and we're dealing with lacking financial in more important things. There's really no need to impress other people based on what they see with us. If they don't like us then just accept the fact that they don't like us but we don't need their validation in things that are making us happy. Because you get to impress others, it's really going to cost you a lot and it's a never-ending impressing act to them because that's making you feel satisfied that they're also satisfied with you. But then, there's no need for that actually and just live lowkey and don't live beyond your means which is actually what the topic means.

[Hamphser]

I will like to add mine that another way to control how much we spend is by stopping the habit of always trying to impress people whenever we find ourselves in the crowd. Because  I have seen many guys fall into this category, whereby in the process of trying to impress a lady they just toast and she agreed to on a date with him, they don't mind spending their last cash as a show of love.
Secondly, another way to reduce how much we spend is by trying to inculcate the habit of privacy, as it's not everybody who should know when you have funds or not.

Very well said.
In times of social media and the digital age, we want people to see how lavish we're living but at what cost? At a cost that with our internal problems and we're dealing with lacking financial in more important things. There's really no need to impress other people based on what they see with us. If they don't like us then just accept the fact that they don't like us but we don't need their validation in things that are making us happy. Because you get to impress others, it's really going to cost you a lot and it's a never-ending impressing act to them because that's making you feel satisfied that they're also satisfied with you. But then, there's no need for that actually and just live lowkey and don't live beyond your means which is actually what the topic means.

Very rampant on in todays era or generation which you could really see those lavish lifestyle of someone who do keep on posting basing up on what he/she had purchased but ending up on having lots of loans

and would be having some problems on paying those in mortgages just because they cant really be able to sustain on doing so.Until you would be able to watch and see out that they've been assuming out their cars and other properties which is really that in todays fact or reality. This is why its better to be that lowkey on which even you do know that you could buy car if you wanted to but didnt
really make some showcase or showoff then i do prefer on this way.

This isnt a race on whose rich or not, this is a race on which on who would be able to sustain their lives and making a comfortable living without having no loan problems or
whatsoever that is correlated to financial aspect.

[GigaBit]

Base on one of my recent post titled"Common Money Mistakes Anyone Can Make"(https://bitcointalk.org/index.php?topic=5448160.msg62062701#msg62062701). 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.

I agree on that if we spend less than what we earn we can creat savings, because we can save the money that is not used, maybe it is hard but if we are going to think about the future and we wanted to save maybe we can save a lot. Many people is suffering financial crisis because they don't save they buy unimportant things and they get a loan with interest,

It seems very simple but in real life the importance of savings is immense. No man can reach his goal without saving. Savings is the only tool for fulfilling one's hopes and aspirations. Moreover, people who only earn money and spend it can end up in debt anyway and their lives can go through hardships. Every person needs to save by controlling the expenditure depending on his income. Even if your savings today is a simple amount, it can turn into a big asset in the future and you can realize your big dreams in a reliable investment of that savings. Controlling expenditure is a difficult task in the present day as inflation has risen but still considering the future one must be careful about saving money.

[blockman]

Very well said.
In times of social media and the digital age, we want people to see how lavish we're living but at what cost? At a cost that with our internal problems and we're dealing with lacking financial in more important things. There's really no need to impress other people based on what they see with us. If they don't like us then just accept the fact that they don't like us but we don't need their validation in things that are making us happy. Because you get to impress others, it's really going to cost you a lot and it's a never-ending impressing act to them because that's making you feel satisfied that they're also satisfied with you. But then, there's no need for that actually and just live lowkey and don't live beyond your means which is actually what the topic means.

Very rampant on in todays era or generation which you could really see those lavish lifestyle of someone who do keep on posting basing up on what he/she had purchased but ending up on having lots of loans

and would be having some problems on paying those in mortgages just because they cant really be able to sustain on doing so.Until you would be able to watch and see out that they've been assuming out their cars and other properties which is really that in todays fact or reality. This is why its better to be that lowkey on which even you do know that you could buy car if you wanted to but didnt
really make some showcase or showoff then i do prefer on this way.

This isnt a race on whose rich or not, this is a race on which on who would be able to sustain their lives and making a comfortable living without having no loan problems or
whatsoever that is correlated to financial aspect.

This generation has built the idea of waiting for others' approval for them to get satisfied. But then, as soon as they see the effect of their way of living and how costly it is. They'll turn and will start to see the good side that you shouldn't really need any of theirs.
Just live your life the way it is without trampling other people and just minding your own business. Soon, they'll get to see how your life was turned and changed and you're living based on the budget that you're having and the income that you're getting.
No need to impress other people and they'll be impressed with how you're interacting with your way of living.

[odunybiz]

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.

Most time Ads are used by seller to attract the attention of  buyers. It better for one to have a good self control on financial matters to help one overcome Ads at such moment.

If its something that is beneficial then go ahead but its not something necessary then its better to skip out and avoid it.

It isn't all beneficiary things that worth buying at the moment. Some item may be important but not still need at the moment. Such item can also be skill till it needs arise. This is why a scale of preference is highly important in ones life to help minimize spending.

[smile1218]

Spending more than you earn is a big No for me. This type of lifestyle will lead people to a large debt that they cannot even pay. In spending money you have to think it wisely, ask yourself if it is just a want or a need. Proper budgeting is the solution so that you could not spend more. You don't need to follow the lifestyle of your friends if they could really afford it. In my experience i do not spend money to things that i do not need and I do always budget the salary i am receiving semi-monthly. I used to bring food cooked from my house to work so that i would not spend some on fast foods. We all know fast foods nowadays are a bit pricey.  That's why think so many times before you spend.

[Etranger]

Base on one of my recent post titled"Common Money Mistakes Anyone Can Make"(https://bitcointalk.org/index.php?topic=5448160.msg62062701#msg62062701). 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.

I get your point and in many cases this should work and improve one's financial situation, maybe make it even more stable. However, don't you think that this steps are focused on spending less, instead of earning more? I am not saying that splurging is a good idea, and that you don't need to limit yourself in any way in your desires, especially if you rationally understand that they are spontaneous and fleeting, and you don't really need them that much. But focusing on lower costs clouds thinking and blocks creative ideas about how to earn more. And then a person very often cannot go beyond his fixed salary. Yes, of course, with these rules, one will manage what he has quite well. But will he ever have more?

[Renampun]

...

👉👉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.

people who shop so much (they are even willing to go into debt just to satisfy their shopping desires) that they can't control themselves are called "shopaholics". I have a friend who is like this (I happen to know her since I was a girl) and she is even involved in debt of up to hundreds of millions of rupiah just because of her crazy shopping and holiday tendencies.

shopping and going into debt only satisfies the desire for a moment, for the long term it is a very destructive habit, wise people will definitely only shop according to their needs, I have heard that the Japanese people's living habits are very good, they will only buy what is needed, not would be a waste of money.

[slapper]

~snip~

Very rampant on in todays era or generation which you could really see those lavish lifestyle of someone who do keep on posting basing up on what he/she had purchased but ending up on having lots of loans

and would be having some problems on paying those in mortgages just because they cant really be able to sustain on doing so.Until you would be able to watch and see out that they've been assuming out their cars and other properties which is really that in todays fact or reality. This is why its better to be that lowkey on which even you do know that you could buy car if you wanted to but didnt
really make some showcase or showoff then i do prefer on this way.

This isnt a race on whose rich or not, this is a race on which on who would be able to sustain their lives and making a comfortable living without having no loan problems or
whatsoever that is correlated to financial aspect.

It's jaw-dropping, folks, how many people go to extremes just to show off on social media! They're sinking into debt to keep their image? It's like a ticking time bomb in society, people caring more about things than financial sense.

You're right, lowkey is the way to go, but there's more to unravel here. People should ponder their money choices like decoding a mystery, looking at long-term goals, not just instant gratification.

Pressure to be like everyone else? It's enormous, like a never-ending maze. But happiness and success? They come from inside, not from piles of cash or stuff. Absolutely fantastic!

[Rupok]

The current situation in the country, so this matter is very common. Every family now spends more than their income. This problem has arisen due to high increase in commodity prices.Finance is a very important part of people's life, so everyone is running towards achieving financial success.We need more revenue to be successful. To manage life, many things are required.  But many fail to meet their needs.  Later they became indebted to meet their needs.Gass bill increase, electricity bill increase, house rent increase due to which people are not able to control their funds.

[odunybiz]

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.

This is very common among West Africans. And this is because they fail to plan their life accordingly with their wife. I think one should consider is present financial situation before giving birth anyhow. I'm not expecting a man with minimum wage as salary to have more than 2 children. After everything, they give birth to this children without a proper care. Imagine a 5 years old kid hawking water all about the street.

Above are images of children hawking around the street.
A lifestyle of giving birth to many children with little care should be stopped in our society for the development of the country.

[freedomgo]

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.

I have to agree with this. Never think that with money on hand, you can buy as much as you want without weighing things if they are really necessary or not. This is the reason why most of the people end up broke  because they tend to spend on the things that are not really useful in their lives, because they are influenced by some other buyers too, or they are tempted because it’s on sale. Remember to stick on your budget and on your budget list, and learn to say no for those who are not listed in your budget list.

[Unbunplease]

You can live your whole life on credit, creating more and more debt. But who will pay for all this? The answer is your relatives. But do they deserve such a burden? Maybe it's better to moderate your desires - instead of an expensive vacation go to the woods, instead of a new smartphone just keep using the old one?