SPENDING MORE THAN YOU EARN

[bayu7adi]

..but there are also who borrows money for no reason for the sake of getting their accounts in good credit scores, and it is also not a bad thing as long as they can pay it before their due dates

This actually gives rise to an individual with a strong debtor character, leading people to become dependent on debt. For some, avoiding debt seems impossible due to their insatiable needs that cannot be met solely by their salaries. However, it is worth reconsidering: until when should someone be in debt? Is it until death?

Living a simple life and enjoying the process of growth stimulates adrenaline more than taking shortcuts by accumulating debt just to fulfill our desires for fun. Many people underestimate the burden of debt because they have a job and the certainty of receiving their monthly salary.

Even though they can repay their debts, their financial planning will progress at a snail's pace. I still believe that debt incurred for consumptive activities will only add to our burdens, and such habits will become a time bomb that can trigger stress if the job we love unexpectedly disappears.

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[mich]

Well these are all some good tips you are sharing with us. It is important for us to have a budget, and to not go over this budget.  I do try only to use cash for purchases only. And I don't use my Credit Card unless I really must do it like if I make a purchase online.

I will make a monthly budget and a list like you. And a shopping list for food items we need for survival. Not types of food that are not needed and are more expensive. And I do say no for things that I would buy in the past. Things like DVDs and lottery tickets I do not purchase anymore

[coupable]

I will make a monthly budget and a list like you. And a shopping list for food items we need for survival. Not types of food that are not needed and are more expensive. And I do say no for things that I would buy in the past. Things like DVDs and lottery tickets I do not purchase anymore

Are you really going to do that?  I think that this topic has returned you with some positivity in making some financial decisions that can be considered relatively important. 
In general, there is nothing better than arranging priorities to organize the spending process to meet daily needs, especially in cases where income sources are limited.  On the other hand, in the meantime, sources of income must be diversified to liberate the spending process and get out of that limited budget between income and spending.

[Flexystar]

..but there are also who borrows money for no reason for the sake of getting their accounts in good credit scores, and it is also not a bad thing as long as they can pay it before their due dates

This actually gives rise to an individual with a strong debtor character, leading people to become dependent on debt. For some, avoiding debt seems impossible due to their insatiable needs that cannot be met solely by their salaries. However, it is worth reconsidering: until when should someone be in debt? Is it until death?

Living a simple life and enjoying the process of growth stimulates adrenaline more than taking shortcuts by accumulating debt just to fulfill our desires for fun. Many people underestimate the burden of debt because they have a job and the certainty of receiving their monthly salary.

Even though they can repay their debts, their financial planning will progress at a snail's pace. I still believe that debt incurred for consumptive activities will only add to our burdens, and such habits will become a time bomb that can trigger stress if the job we love unexpectedly disappears.

That is correct but that is correct with the “dead investments” and not with the “progressive investment”.  The difference is very simply in both of them. Dead investments is something which will have depreciation of the value over the period of time. This includes cars, bikes, furniture, artefacts, paintings, electronics (LCD, smartphones, watches) and much more in the list. However, if you consider a loan to be taken for the progressive investment then that is the best thing to do. You can have example of Real estates, commercial shops, homes, offices, that get appreciation with the time due to increasing demand. They offer exponential growth in the value because they are materialistic things which are always in demand. Definitely what is said in above post is true but it’s even better if we segregate our investment like I mentioned here.

[xSkylarx]

I will make a monthly budget and a list like you. And a shopping list for food items we need for survival. Not types of food that are not needed and are more expensive. And I do say no for things that I would buy in the past. Things like DVDs and lottery tickets I do not purchase anymore

Are you really going to do that?  I think that this topic has returned you with some positivity in making some financial decisions that can be considered relatively important. 
In general, there is nothing better than arranging priorities to organize the spending process to meet daily needs, especially in cases where income sources are limited.  On the other hand, in the meantime, sources of income must be diversified to liberate the spending process and get out of that limited budget between income and spending.

Others will say that you should find another source of income so that your budget will be enough, like you don't need to budget now or cut some food just to keep up the budget. Just imagine you don't need to set a certain budget for food and you can spend it on whatever you want to cook (except eating at fancy restaurants). It can make you feel free. That is really what I've achieved now so that my family can eat healthy foods, but again, having another source of income is difficult, but we should keep looking.

[tjtonmoy]

👉👉Use cash only

Gotta say this makes a lot of difference. When you have cash in your hand while purchasing an item at the store, it always gives you a better idea of how much you are spending and how much you will be left with. I have tried it many times and it really works. So telling from experience, this helps a lot. When you get a clear understanding of what you will be left with, you can make a better plan and stop the urge to buy unnecessary things.

One more thing I would like to add is, to delay your buying even if you have a perfect budget plan and a list for it. Delaying your buying will make you revise the list more and you can point out what you need now and what you don't. And avoid going after brand items. If it does the same work, why buy it with more money just because it carries a brand name?

That's all from me. Good post by the way. I am sure this will help a lot of people.

[Japinat]

I will make a monthly budget and a list like you. And a shopping list for food items we need for survival. Not types of food that are not needed and are more expensive. And I do say no for things that I would buy in the past. Things like DVDs and lottery tickets I do not purchase anymore

Are you really going to do that?  I think that this topic has returned you with some positivity in making some financial decisions that can be considered relatively important. 
In general, there is nothing better than arranging priorities to organize the spending process to meet daily needs, especially in cases where income sources are limited.  On the other hand, in the meantime, sources of income must be diversified to liberate the spending process and get out of that limited budget between income and spending.

Others will say that you should find another source of income so that your budget will be enough, like you don't need to budget now or cut some food just to keep up the budget. Just imagine you don't need to set a certain budget for food and you can spend it on whatever you want to cook (except eating at fancy restaurants). It can make you feel free. That is really what I've achieved now so that my family can eat healthy foods, but again, having another source of income is difficult, but we should keep looking.

Even though there's no other faucet to get money, it is still advisable to keep organize your finances so that an unwanted situation will be minimized or even avoided. It will be hard of course mainly if the income is not that big and then you have a quite bigger family to feed, but there's no need to fret because everything can be done if we analyze it correctly and most importantly, avoid doing or buying such things that will make the situation even more harder.

[ancafe]

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.

Human words and behavior sometimes don't go as expected when lived because it's easier said than done. But one must train how to live a simpler life and financial productivity must be a priority to be spent on needs that are more needed, training oneself to save is not easy. When life is lived properly and spending money for necessary needs, a person can train himself to place money more productively and be able to save the money he has.

Lifestyle is only a recognition limit and we often don't adjust it, so that under certain conditions our sources of income and expenses become unbalanced and in the end the life we live is increasingly burdened by fulfilling a lifestyle.

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.

Life needs to be regulated for financial problems and money is one of the necessities as a support for life, controlling money for needs is indeed very necessary and this is where one's intelligence lies to control and sufficient expenses according to income.

[odunybiz]

Good tips, the temptation to spend money at this time is very large compared to when I was in college or at the start of work, namely 10 years ago, now malls are designed to be very attractive so that it makes us want to shop, restaurants are also designed to make us able to last a long time and try all the available menus so as to make finances we can get screwed.

You are right with this. This is part of their advertising means to attract customers but one can still avoid most of this temptation if one make a good plan for his money and lifestyles. I'm not expecting a hustler to visit restaurants for all day meal, this may be so expensive for him/her. Shopping with list and making a budget for your monthly income can save you from any attractive design place on any goods and services.

[Vaskiy]

Good tips, the temptation to spend money at this time is very large compared to when I was in college or at the start of work, namely 10 years ago, now malls are designed to be very attractive so that it makes us want to shop, restaurants are also designed to make us able to last a long time and try all the available menus so as to make finances we can get screwed.

You are right with this. This is part of their advertising means to attract customers but one can still avoid most of this temptation if one make a good plan for his money and lifestyles. I'm not expecting a hustler to visit restaurants for all day meal, this may be so expensive for him/her. Shopping with list and making a budget for your monthly income can save you from any attractive design place on any goods and services.

For marketing big money is used than for the development of the product. This is why people were in a force to spend more than what they earn. Another reason, the lifestyle have got a transition to status based one. Here people have started to own things based on status and not by reason or by need. This makes people spend much on unwanted things. Spending more than what you earn is really bad and this is the root cause for all the financial problem in one's life.

[Dr.Bitcoin_Strange]

Even though they can repay their debts, their financial planning will progress at a snail's pace. I still believe that debt incurred for consumptive activities will only add to our burdens, and such habits will become a time bomb that can trigger stress if the job we love unexpectedly disappears.

although it depends on how frequently one does that, because at times, for those who are not really earning huge amount of salary, things could chuck up a bit, and at that moment you might really need some laon aids to save their ass. In moments like that, you don't need to starve yourself when you have someone who can easily lend a helping hand. But some people can have a bad habit on the process too; the bad habit I mean is to request another loan without repaying the first one.

[STT]

I got the simplest tip for bill payment priorities, not getting into trouble with late or unpaid bills.   Write down all the big bills you have no choice in, usually this involves tax and rent.   This is money you receive in pay but which honestly speaking is never yours to spend, its purely in your grasp just days or weeks then its gone.  If you dont pay tax you will goto jail and property rent or costs cannot be avoided easily, this also is money gone just days after you receive it.
   If you mark off this money which is never your own from  monthly income it will immediately give a far more realistic actual real money spending budget.   Many at this point might realize they have very little cash spare.   Its not always the best view but stay true to the real figures, dont be tempted to choose debt and even more cost from interest payment just accept the monthly bill has to be taken out of actual cash available.   If you have near zero then consider ways to either pay less in the bill or increase income but stay realistic till a change is possible.

[DeathAngel]

Lots of people spend more than they earn, this can only continue until they can not get any new line of credit though. It’s a big problem for a lot of people, the cost of living has gone up so much that low earners don’t have any other choice after exhausting cost cutting measures. All I can say is I hope the cost of living decreases soon & life can be more comfortable for people again.

[slapper]

I got the simplest tip for bill payment priorities, not getting into trouble with late or unpaid bills.   Write down all the big bills you have no choice in, usually this involves tax and rent.   This is money you receive in pay but which honestly speaking is never yours to spend, its purely in your grasp just days or weeks then its gone.  If you dont pay tax you will goto jail and property rent or costs cannot be avoided easily, this also is money gone just days after you receive it.
   If you mark off this money which is never your own from  monthly income it will immediately give a far more realistic actual real money spending budget.   Many at this point might realize they have very little cash spare.   Its not always the best view but stay true to the real figures, dont be tempted to choose debt and even more cost from interest payment just accept the monthly bill has to be taken out of actual cash available.   If you have near zero then consider ways to either pay less in the bill or increase income but stay realistic till a change is possible.

You've taken a straightforward and effective tack. It's time to face facts. When budgeting, many people fail to account for what I call "ghost money" or "temporarily owned" funds. Here's a new spin on that idea: how about factoring in the "future-self" tax as well? Not the government or your landlord will benefit from your savings, but you will.

Now that the essentials have been subtracted, you should reevaluate if what's left over causes you to sigh. It's important that anything you do to save costs or earn more money works for you. But keep in mind that there's absolutely no shame in getting help with your finances. It might turn out to be the best decision you ever made

[khiholangkang]

Lots of people spend more than they earn, this can only continue until they can not get any new line of credit though. It’s a big problem for a lot of people, the cost of living has gone up so much that low earners don’t have any other choice after exhausting cost cutting measures. All I can say is I hope the cost of living decreases soon & life can be more comfortable for people again.

I think the cost of living will never be reduced because inflation haunts the currency that we use, every year it must be printed for the continuity of supply and demand but it also affects the value of the money that is increasingly down, I think it will be difficult, We will get a salary that has an additional zero to the salary we receive.
And indeed in the current situation people will spend more money than their income, because inflation increases while the salary received by employees does not have an increase, surely it will be very tiring, and budget cuts are only small businesses that can be done in situation like this.

[Fortify]

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.

Most of what you suggest is good advice - like budgeting and making a list of things that you stick to when you're out shopping, otherwise you end up buying random crap you don't really need via impulse or marketing psychology. However other things like paying in cash are a bit nonsensical, whole they might work for some, it is a weak way to reinforce correct financial behavior and learning to keep within your means when spending is important - constantly using cash can be detrimental to building good spending habits.

[YUriy1991]

Good tips, the temptation to spend money at this time is very large compared to when I was in college or at the start of work, namely 10 years ago, now malls are designed to be very attractive so that it makes us want to shop, restaurants are also designed to make us able to last a long time and try all the available menus so as to make finances we can get screwed.

You are right with this. This is part of their advertising means to attract customers but one can still avoid most of this temptation if one make a good plan for his money and lifestyles. I'm not expecting a hustler to visit restaurants for all day meal, this may be so expensive for him/her. Shopping with list and making a budget for your monthly income can save you from any attractive design place on any goods and services.

Yes. It is common and is one of marketing strategies also in terms of marketing. I think that's very natural, especially with the current conditions where people want to shop in a complete and comfortable place, but as the OP say, we also have the power and effort to control and align which financial priorities are more important and urgent or not yet urgent.

[Wildwest]

Nowadays we find very many people who spend more than they get because they follow a lifestyle that does not match the income they get, so this is the biggest mistake we make in everyday life, if an item we want but our money is limited then never buy the item and use the money first for more important purposes, But if indeed we really need these items, there is nothing wrong with us buying, our lifestyle must be adjusted because the current economy is sometimes not as we expected.

[Fredomago]

Good tips, the temptation to spend money at this time is very large compared to when I was in college or at the start of work, namely 10 years ago, now malls are designed to be very attractive so that it makes us want to shop, restaurants are also designed to make us able to last a long time and try all the available menus so as to make finances we can get screwed.

You are right with this. This is part of their advertising means to attract customers but one can still avoid most of this temptation if one make a good plan for his money and lifestyles. I'm not expecting a hustler to visit restaurants for all day meal, this may be so expensive for him/her. Shopping with list and making a budget for your monthly income can save you from any attractive design place on any goods and services.

Yes. It is common and is one of marketing strategies also in terms of marketing. I think that's very natural, especially with the current conditions where people want to shop in a complete and comfortable place, but as the OP say, we also have the power and effort to control and align which financial priorities are more important and urgent or not yet urgent.

Businesses are following the patterns from how people spend their money, with lots of offers they will be able to allure those people to spend more, even it's not really needed but because of alluring offers or a good marketing people will push and spend money for that particular services or products.

It's very important to still in-control with your finances, without control surely you will over-spent your money and leave you with a lot of debt to take care.

[Mr.right85]

Nowadays we find very many people who spend more than they get because they follow a lifestyle that does not match the income they get, so this is the biggest mistake we make in everyday life, if an item we want but our money is limited then never buy the item and use the money first for more important purposes, But if indeed we really need these items, there is nothing wrong with us buying, our lifestyle must be adjusted because the current economy is sometimes not as we expected.

It about the glamour and who is the more cool these days. This has been taken up by fashion House and tech developers to make some good profit off citizens of the world who have a hard time in just being the best version of themselves.
People try to emulate celebrities of which, there lifestyle is very much a part of there trade while ordinary citizens that knows this and even those that don't seem to ignore the part that, they've got no trade of there own that requires them to put up such lifestyle.

Having to spend more than you earn is such a bad means to live. You could easily find yourself at the edge and you might fall off before you know it.

Aside rom the beings, I think this is how some countries even live and its sad with all that. Watching leaders take loans from international bodies and loot it.