SPENDING MORE THAN YOU EARN

[CarnagexD]

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.

Exactly. We understand the level of urgency and the need of what you want to purchase but you'll get into a lot of trouble and mental stress if you spend money that is not yet earned.

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 the time, it's just us wanting to buy the things that we don't like just to impress the people we don't like. So we spend lavishly. Have the right mindset. then you won't have any trouble. You'll prioritize what you truly want in life. Say yes to what truly matters to you and no  what is not. You don't need to combat yourself to control your impulse buying but will come naturally because you have your goals and intentions right. Either you create a list, using a cash, proper budgeting are sound techniques but putting these into practice consistently is what is necessary.

These small things compound overtime. So trust the process and more importantly yourself.

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[Don Pedro Dinero]

Take control of your spending today and you’ll reap financial rewards for years to come.

This is the first step for someone who wants to take control of their financial life, and it is essential. With today's ease of getting into debt and the incitement to consume, the easy thing to do is the opposite, spend more than you earn, and if you earn more you start to spend more, and you get stuck in what is known as the rat race. There are many cases of people or family units with high incomes that end up bankrupt or financially drowned because they have been spending more than their income for a long time: credit cards, personal loans, high mortgages, consumer loans, student loans... you name it.

Normally, in order to spend less than you earn, the best thing to do is to make a budget to control income and expenses, and as soon as you get paid, set aside part of it for savings. Over time, instead of having a ball of debt that has become bigger and bigger, you will have a good patrimony.

[Sarah Azhari]

👉👉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.

That 2 letters I can't handle it until today. Yes, I don't know others, but for me, if I open an online shop application, I always put what I look in the shopping cart. This looks crazy, sometimes I bought something and I never open that box package until today. I've been scolded by my brother. and, when I'm not around, he uninstalls the online application shop on my phone to avoid me to buy unnecessary goods. so after he doing that, I had a big fight with him because in my phone have bitcoin wallet.

Now, I try to bold those 2 letters, in my phone wallpaper, maybe can remind me for not wasteful.

[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:

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.

With the rise of streamers and influencers, the spending mentality has never been stronger. It starts when you are young, as endless "celebrities" are constantly showcasing all manner of luxurious goods and services. By the time they have millions of followers, they can afford these things without a second thought - it is like someone on the average wage losing a penny. If you've got a ten million in the bank and spend a thousand on a pair of headphones - it doesn't affect their wealth much at all. If you have ten thousand in the bank it would be a huge chunk of your net worth to copy them.

[Supreemo]

👉👉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.

That 2 letters I can't handle it until today. Yes, I don't know others, but for me, if I open an online shop application, I always put what I look in the shopping cart. This looks crazy, sometimes I bought something and I never open that box package until today. I've been scolded by my brother. and, when I'm not around, he uninstalls the online application shop on my phone to avoid me to buy unnecessary goods. so after he doing that, I had a big fight with him because in my phone have bitcoin wallet.

Now, I try to bold those 2 letters, in my phone wallpaper, maybe can remind me for not wasteful.

this 2 letters apply to everything not only to crypto or investments and money. saying no is a testament that you can decide for yourself. saying no isn't only for the sake of saying ni since you need enough courage to say that and apply that.

[xSkylarx]

👉👉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.

That 2 letters I can't handle it until today. Yes, I don't know others, but for me, if I open an online shop application, I always put what I look in the shopping cart. This looks crazy, sometimes I bought something and I never open that box package until today. I've been scolded by my brother. and, when I'm not around, he uninstalls the online application shop on my phone to avoid me to buy unnecessary goods. so after he doing that, I had a big fight with him because in my phone have bitcoin wallet.

Now, I try to bold those 2 letters, in my phone wallpaper, maybe can remind me for not wasteful.

this 2 letters apply to everything not only to crypto or investments and money. saying no is a testament that you can decide for yourself. saying no isn't only for the sake of saying ni since you need enough courage to say that and apply that.

But saying no is difficult. If ever we can practice to say no like when we want to buy our wants we should always think twice if it is worth it if not then it is the best to say no. I do agree that this apply in almost everything when it comes to spending but the problem with this is that it is difficult to do which we should practice it in our daily life like in spending nonsense things

[Latviand]

👉👉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.

I would disagree here in the part that credit card isn't helpful, if you can actually use it wisely and pay your dues in the due time, you can actually get a lot out of it, doesn't some credit cards have free travel miles when you use them? Plus, using your credit card wisely makes your credit score more amicable to banks if you are asking for a loan. Totally agree with staying from debit though, it's your money while credit card isn't your money that you're spending.

[Ludmilla_rose1995]

therefore I prefer to shop alone than with my wife. If we shop alone, we can be wiser in spending money and shop faster. It's different if we shop with our wife, there must be unimportant things to be spent and shopping time will also be longer, it makes expenses higher and very waste of time

[Fiatless]

👉👉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.

Paying with cash is no longer attainable in most countries. In my country there are cash restrictions so paying with online transfers and cards is a must because you can't even have access to cash. Some people might argue that they spend more when they have cash at hand, so they prefer using cards. The bottom line is that a reckless spender will always mismanage his fund whether it is cash or card. That's why it is good to cultivate the habit of budgeting and contentment.

👉👉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!

Shopping without a list is like driving without a destination. Having a list enables one to get the most important needs first and trivial needs can be bought with what is left. Generally, people that spend above their means end up in debt.

[irhact]

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 we have many people living above their salaries, and this is the main reason it'll be very difficult for these people to get financial freedom. We have people earning below $50k yearly yet their lifestyle is that of someone earnings more than $100k yearly. They're driving cars that their salary can't afford, living in apartments that their salary can't afford as well etc.

We have those living on borrowed money, they might have borrowed so much that when they receive their salary, majority goes to replaying the debts then they go back to borrowing again or we have people that spend all their salary on wants immediately they're received then go back to borrowing.

[bayu7adi]

We have those living on borrowed money, they might have borrowed so much that when they receive their salary, majority goes to replaying the debts then they go back to borrowing again or we have people that spend all their salary on wants immediately they're received then go back to borrowing.

Not all old debts can be paid off if expenses exceed income. New debts will continue to pile up every month and increase over time.

In my opinion, this is more common among people who previously had very high monthly salaries and a luxurious lifestyle. However, when they lose their best job, their monthly salary becomes lower. Despite this, the luxurious lifestyle they adopted cannot be changed, and they continue to live beyond their means even if their salary is not enough. Pressure from their social circle or people around them to maintain their social status often becomes a significant problem in this situation. Someone does not want to lose their existence and chooses to maintain their lifestyle. They may hope to get a job like before by socializing with people who have a high-end lifestyle.

[Lorence.xD]

therefore I prefer to shop alone than with my wife. If we shop alone, we can be wiser in spending money and shop faster. It's different if we shop with our wife, there must be unimportant things to be spent and shopping time will also be longer, it makes expenses higher and very waste of time

Well good for you, it still depends on two persons practically when budgeting their money. Some would save but sooner would spend a lot than they save. If I compare myself with that situation, then I come to think of my mother, it's the time I'm still a student and whenever I buy unnecessary things she would always say the downside of it and waste of money. For example, I bought an skin in game and I told her about it, she would say "you'll get bored with it in a long time" of course as a gamer I disagree that I wouldn't feel that in my dream skin. Now looking back in the past, I regretted spending a lot of money in game than investing in crypto which I've learned few years ago.

[lovesmayfamilis]

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.

Have you tried using credit cards? If so, then the temptation to buy some things, and even more so, unnecessary things, is almost always present in people who are used to living in debt. It is not bad not to deny ourselves desires if we understand that we have a stable and well-paid job, which, if our expenses are exceeded, will allow us to cover all debts on time. But you should always leave a clause about unforeseen circumstances that, in one way or another, can affect our finances in a negative light, so of course, spending wisely will be the wisest decision.
But there is one point: if a person is used to living well and spending his money without hesitation, any changes will make him depressed.
You get used to good things very quickly, and it is almost impossible to wean yourself from them.

[knowngunman]

In reality, we all spend more than what we earn thou it is not healthy to our financial life. Having a monthly budget is advisable but unfortunately some unavoidable circumstances do occur occasionally that make one spend more than what is budgeted for the month. However, your earnings will determine your budget but to be on a more safer side, one should not only budget for what you need at home alone but also include emergency and unexpected budgets as miscellaneous funds.

[YUriy1991]

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.

Yes, that's right. Spending more than you make is in my opinion a common financial mistake that can lead to a lot of stress and financial problems. To stop spending more than you make, I think it takes practice, and it's important to make a budget and stick to it. What does it mean? by identifying income, expenses and allocating money we can reduce unnecessary expenses.

There are many steps and ways to earn more money, such as taking part-time jobs or freelancing. In addition, it is very important here "Avoid Accumulating Debt", namely avoiding using credit cards or taking loans unless absolutely necessary and you have a plan to pay them back in full and on time.

[YinShuiSiYuan]

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.

Yes, that's right. Spending more than you make is in my opinion a common financial mistake that can lead to a lot of stress and financial problems. To stop spending more than you make, I think it takes practice, and it's important to make a budget and stick to it. What does it mean? by identifying income, expenses and allocating money we can reduce unnecessary expenses.

There are many steps and ways to earn more money, such as taking part-time jobs or freelancing. In addition, it is very important here "Avoid Accumulating Debt", namely avoiding using credit cards or taking loans unless absolutely necessary and you have a plan to pay them back in full and on time.

This is the problem with majority of people now as jmcomes are limited but spendings are limitless , either its basics or luxuries people are spending more than their desired limits.
Causes are mostly inflation or high prices of basic commodities but incomes are nit increasing in that proportion.

[Freddie Boyer]

Reference: https://www.pnc.com/insights/personal-finance/save/how-to-stop-spending-money.html

True and in my opinion, that not all purchases are created equal. Although lately there are many advertisements that may be tempting as you say it means it is important to refrain and say "no" to items that are not necessary. Spending more than you make can lead to a variety of financial difficulties, including debt, high interest rates and decreased savings.

I think To avoid these negative consequences one should make a habit of carefully evaluating their purchases and focusing on the important things over the pleasures by learning to prioritize needs over wants and creating a budget can be a useful tool in this process as well as getting used to it.

[Sanitough]

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.

Learn to live within your means so that you can live your life free from debt. That’s why a lot of us are drown to debt because we can’t get rid of our wants, when in fact we should prioritize our needs over our wants. However, if we have extra money left, maybe that’s the time to consider purchasing our wants but if we are on a tight budget, learn to weight things which are necessary and which are not.

[Aanuoluwatofunmi]

If you spend than you earn then you will definitely be in debt, this is a simple arithmetic that has no confusion in it no matter how, you spend than you earn, which means you either borrow to live or steal what does not belong to you, for a proper way of planning, our income level must be greater than what we spend, then if we are unable to meet up, we can as well double our income source in other to create enough room for our financial economy demands.

[LogitechMouse]

👉👉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.

I guess I'm one of the lucky guys around the world because I have a partner who is very expert in budgeting our salary.
She's good that even though our salary is kind of small compare to others, she can still budget it, and we still have extra funds for investing into different assets.

I guess budgeting is a big factor to any couple. For me, it's a necessity already for a couple and I believe that one of them (or better of 2) must know how to budget their salary on a monthly basis, or they might be having a hard time financially in the future. For me, budgeting is a need if we want to succeed in life. Knowing how to budget your money will help you survive if the worst thing happens.  Might be off-topic, but the pandemic thought us to save money. The pandemic thought us that we should've some emergency funds, and that's part of budgeting as well. It's hard to budget at first because you might come to a point that you need to sacrifice something for the betterment.

👉👉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!

Every time I go shopping, or I need to buy groceries, I always have a list of things that I need to buy, and I always have the exact amount of money that I need because I don't want to overspend. Not having a list when buying things in a grocery is a recipe for disaster because you might end up buying things that you don't need.

👉👉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.

Not only in money, but all things in life. We must know when to say NO when needed. This is my problem at first TBH. It also come to a point where I will always say YES to everything, and in the end, I was the one who doesn't have anymore. In money, don't get attracted into some sales when you are shopping. Learn to say no to 50% sales, learn to say no to some discounted things out there.