SPENDING MORE THAN YOU EARN

[odunybiz]

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.

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[Hamphser]

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.

[DevilSlayer]

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.

Learning to say "no" is a skill that is very hard to master especially if you are a teen and when your friends are inviting you to a fancy dinner, club or something that can considered as expense. I learned that skill when I was in college, I lose a lot of friends because I keep rejecting them whenver they invite me on something else. I already understand the principle of success and how can I become rich in the future and one of it is  to learn to say no and that is why I implemented it even now. The reason why there are many broke bois is because they are focusing on how will they become look rich and now how to become rich itself.

Being rich is not just about having a lot of money, it is about having a positive mindset and have winning attitude that can help you to overcome adversity and push your limits to become the best while making money. Make sure also to track your daily expense and make sure that you ahve a financial goal that you should achieve for you to not be eliminated in your own track.

[Obari]

This should leads to many downfall today is our society
Do not spend more than you earn this sounds like a Warning and it should be carefully examined and taken into practice as a lifestyle
Many try to impress even without thinking about the rate of theIr income is suggest we make financial records on every expenditure we make so as to help us know our level of spending
Avoid spending on costly things that may drain your earnings even as the instruction goes people still fail to listen

[serjent05]

We can add, don't spend money that is not earned yet. We should avoid this practice so that we can be saved from debt.  People who tend to do this often end up in debt since we are too comfortable in spending thinking that our funds will come soon making us comfortable in overspending and borrowing money from other people.  This kind of action may put us in financial jeopardy and since most borrowed money has an interest, it will incur more unreasonable spending on our side.

[gunhell16]

👉👉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.

This is the problem that is still being done by the majority, only a few are able to have a plan on how to spend the money that comes to them. The others, especially those who rely on their spouses who work abroad, don't think about it anymore, because all they can think about is someone who will send them monthly. So they will no longer value the money that is sent to them because what is happening is the price here, the price there.

But if there are plans like shopping lists, unnecessary things will be limited, and savings can be set aside for emergencies. When there is a plan in this matter.

[Dr.Bitcoin_Strange]

I agree with all your points, but the second place where you say to use cash only is partially unacceptable, although it depends on individuals. Having a shopping list is enough to make you only spend what you have written down to purchase, so going above the limit is assumed to be something you decide to do on purpose. Unless, of course, you don't have a budget to work with, which is what your first point is about. So when a person meets the other points you stated, whether they pay with cash or a card, they would still go for their intended amount to spend; going above that limit because they are paying with a card is a deliberate decision.

Also, greed and a show-off lifestyle can make some people spend more than they earn.

[nimogsm]

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.

Learning to say "no" is a skill that is very hard to master especially if you are a teen and when your friends are inviting you to a fancy dinner, club or something that can considered as expense. I learned that skill when I was in college, I lose a lot of friends because I keep rejecting them whenver they invite me on something else. I already understand the principle of success and how can I become rich in the future and one of it is  to learn to say no and that is why I implemented it even now. The reason why there are many broke bois is because they are focusing on how will they become look rich and now how to become rich itself.

Being rich is not just about having a lot of money, it is about having a positive mindset and have winning attitude that can help you to overcome adversity and push your limits to become the best while making money. Make sure also to track your daily expense and make sure that you ahve a financial goal that you should achieve for you to not be eliminated in your own track.

here I agree with you 100% this is a very important skill to say no to those people with whom you are not on the way. It is important to surround yourself with people with similar interests to yours and not those who will drag you down. And the sooner people realize this, the better. In my youth, I spent a lot of time and money on stupid things, which I regret a little. But with experience, I no longer make such mistakes.

[CryptSafe]

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:

This is one of the major problems in the society today and families to be precise. you see families, individuals spending more than they earn just to impress when they know they can not afford to pay for what they are spending with their level of income thereby mortgaging their income and accumulating debt. Some times before they receive their salaries they must have had enough bills and debt to service and that is very disturbing because they would have nothing to sustain themselves and thereby leading them to borrow another. And this keep repeating itself and over and over again and they cannot be able to save a dime for themselves.

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

 Sometimes shopping  without budget leads to overspending and this is not too cool. One needs to make sure to always  make out budget according to his or her level of income so as to have a little savings for reserve because no one can tell when an emergency can come up at any point in time. So therefore it is wise that one should be able to learn how to save by proper budgeting according ones level of income.

[n0ne]

All the mentioned list were really useful and following the same could help to limit our spending and let us save more. Earning is different from saving. To be successful we should earn more as well as save more, just because we earn more the spending shouldn't turn high. Being from a third world country we were able to experience how my parents provided what we need. They used to work hard and save each penny, and spend on things that is utmost necessary. Apart, with the remaining funds they prefer buying gold because they believed it to be the support platform when there is some emergency need. Someone's sacrifice makes the next generation an upliftment unlike the education and revenue out of different sources.

[Oilacris]

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.

Learning to say "no" is a skill that is very hard to master especially if you are a teen and when your friends are inviting you to a fancy dinner, club or something that can considered as expense. I learned that skill when I was in college, I lose a lot of friends because I keep rejecting them whenver they invite me on something else. I already understand the principle of success and how can I become rich in the future and one of it is  to learn to say no and that is why I implemented it even now. The reason why there are many broke bois is because they are focusing on how will they become look rich and now how to become rich itself.

Being rich is not just about having a lot of money, it is about having a positive mindset and have winning attitude that can help you to overcome adversity and push your limits to become the best while making money. Make sure also to track your daily expense and make sure that you ahve a financial goal that you should achieve for you to not be eliminated in your own track.

here I agree with you 100% this is a very important skill to say no to those people with whom you are not on the way. It is important to surround yourself with people with similar interests to yours and not those who will drag you down. And the sooner people realize this, the better. In my youth, I spent a lot of time and money on stupid things, which I regret a little. But with experience, I no longer make such mistakes.

There are people who are really that good on differentiating worthy decisions despite on being surrounded by those people who do make out some foolish decisions into their lives in speaking about
finances on which i do really much agree that this is some sort of skill or behavior which is something that really hard to maintain out because we know that temptations is really there which
it would be mainly be affecting your emotion which is something that would be hindering and boggling you on what you do have in mind.If you arent that strong willed person
then this wont be an issue.

[Unbunplease]

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

[Baofeng]

Yes, this is the first thing that I have learned when I started to get a job, bills are piling up, credit card debts, then budget for food and other amenities. So for those who are just starting up it's going to be very difficult unless someone more experience will guide them, like their parents on how to live without having to spend more than you can earn.

Buy what you need and not what you want.
If you have a chance to buy second hand things, then do it. It's not always that you will have to buy brand new which cost a lot.
I also like the pay cash attitude, in this case you don't need to swipe your credit card.
If you can used public transportation, the better.

[virasog]

We can add, don't spend money that is not earned yet. We should avoid this practice so that we can be saved from debt.  People who tend to do this often end up in debt since we are too comfortable in spending thinking that our funds will come soon making us comfortable in overspending and borrowing money from other people.  This kind of action may put us in financial jeopardy and since most borrowed money has an interest, it will incur more unreasonable spending on our side.

How can we spend more than we earn ? The only way to do this is by taking loans. The person who does this falls into a big trap because eventually, he will be doing the same in the coming days and months, making his loan pile up with every passing day. Also, when you know that you have to pay back the loan and you do not have the money to pay back, it will give you a lot of mental tension and you can go into depression. Some people will start thinking of illegal ways to get money and pay back the debt.
The disadvantages of this act are unlimited, and it can ruin one's life in the long run.

[Yatsan]

Controlling one's fund would be the best thing to do. This includes putting on a budget and accurately disseminate the money to your needs. On my end, in order to avoid having bigger expenses than my income, I was alloting a budget for the whole month; bills, for grocery, and other needs. I am also putting an emergency fund for the whole month and if it happened to not be used, it will just be moved for the next one. Then the rest of the money will be put into savings. Ofcourse there will be times things won't be consistent but atleast you will have that regulated fund which would allow you to track your expenses and be able to seek for improvement if ever there are things to change.

[tabas]

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

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

[Adbitco]

👉👉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.

Here is the major place where i usually falls victims because whenever i try converting some digital money to fiat and it gets to local bank, i hardly control myself while shopping since i was already using a credit card to shops, i go against my plans and budgets.
Including both airtime Recharging i goes by spending much time while talking on phone, so what i did was to pull out my alert SIM in order not to keep re-charging unnecessarily and also made me to reduced the rate at which i do make calls since i can't quickly top-up my airtime. Then lastly also try to deactivate your bank mobile app from your smartphone, this also improve the rate at which you spend money by sending out money so easily to people and friends without you following your monthly and weekly budgets.

[KingsDen]

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?
If yes, that should be the real example of spending more than one earns.
That is a very big problem to be combacted.
The first method to fight it is trying to relocate to an Area that is less expensive.
Change the school of your children to low tuition schools.  Spend less on buying clothes and maintain the ones you have etc.

[sheenshane]

👉👉Shopping with a list

👉👉Control your grocery list

These are very effective and in addition to this is "create a budget".
Creating a monthly budget that outlines your income and expenses.  This will give you a clear picture of your financial situation and help you plan your spending accordingly, and through your list, you can monitor your expenses which is prioritizing your needs over wants.  Make sure to allocate your income to necessary expenses before spending on discretionary items like dining out, shopping, or entertainment.

I freshly remember those old days when my grandma was alive and said, when you earned $5 a day, don't spend over that amount on a day, always keep $1 for future investment or set aside a portion of your income into a separate savings account to build an emergency fund that can cover unexpected expenses like medical bills.

[Wexnident]

~

Isn't this something natural in most cases? I mean if you can't follow of spending less than what you earn, you'd inevitably be slapped with one big hand of "no money" at some point in time, regardless of how much money you actually saved up, if said saved up money exists in the first place even.

In most cases of overspending, simply creating a strict and straightforward plan would be more than enough imo. Not those generic types of things like buying some food, specify it if possible so you can immediately cut costs. Though in my case in my first few times of setting up a list, I usually buy an additional or two not on it but eventually it simply became a natural part of the stuff I buy even without the list, I guess you can consider that as planned then?