SPENDING MORE THAN YOU EARN

[Vishnu.Reang]

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 with aforementioned point, whatever points he mentioned its really useful for every individual's life. If we follow all, then yes we definitely can save huge money. What happen with me last two three days back I went for movie with my friend, there was time for movie to start that's why we was roaming around shopping mall to do time pass but I saw one beautiful curtain an I purchase with expensive price. I didn't realize for time being that curtain is really expensive because I was paying with card, if that time I used cash may my mind change. Usually I don't make grocery list but next grocery will definitely make list.

[1714751044]

1714751044

[MarjorieZimmermanGinger]

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.

If you have been advised by your parents in the past, that saving money is the best way to avoid problems during unstable economic turmoil like now. What can we take from this advice, that our lives will be influenced by how able we are to spend on the necessities that are needed and not to fulfill our lifestyle. Everyone has different expenses and also different financial income, but a frugal and simple lifestyle cannot be described in general terms, because it could be that my expenses and yours are also different.

I agree that spending is according to individual needs and not forced to buy because of lifestyle. Financial control, planning and having to adjust income with expenses so that our lives are not problematic, especially amid the current economic conditions and many people have difficulty controlling their needs, expenses and income. So that it places increasingly complicated financial problems, moreover the source of income is unstable because jobs are increasingly difficult to find.

[savetheFORUM]

With the use of cash only, I can kind of relate to this, when my debit card gets full, often even though the ones in my cart are not in my plan and are placed in my account in an online shop, I suddenly check out.

        In this part, it seems like I haven't been able to stop myself that I should reduce this habit of mine because I often buy items here that I don't really need, just got tempted only.

What if you use crypto instead of that two payment methods? Because I noticed that many crypto users are thinking twice if they will spend their crypto or not even to the stuffs that they love because they think holding for a while can benefit them later on.

It helps them earn extra so that they can buy even more or much better stuff than if they will buy now but if its badly needed and we don't have any medium to use other than our crypto, we will still end up using it but there is no way we will over spend. Sometimes it's the fault of the store because they low key recommending items to us but why not ask someone to buy for yourself if you are too weak and get easily distracted by the items around you?

[Faisal2202]

👉👉Learn to say “no”

All of your points are correct, i actually attracted by this one. Usually, i rarely visit markets like for mainly shopping purposes. So, last week i went to another city with my friends they want to buy smartphone (second hand), so, i thought i should also visit the market.

Market was really big mainly for smart phones and we have enough budget but we were so confused in choosing one. So after spend around 5 to 7 hours in that market we bought one phone which we don't even looking for hehe. and it was midnight so we went home and then returned back to buy our chosen phone. Point is, one thing that i felt there, we can not buy everything like there were thousand of phones that has extreme level of features but we have to chose only one this makes me feel the same "learn to say No".

My plan was just to observe the market but every smart phone was saying to me please buy me (hehe) even my friend offered me to borrow some money so i can buy phone, but i was strictly following no to buy one even i have enough money in saving. I also found these threads helpful which is related to your ones.

• Try to save money while you still can, will you ?
• Methods to cut food costs

There was one more thread which i found hard to recall so i will try if i could remember it other wise above ones are enough too. These could shed more light on saving.

[inthelongrun]

With that right mindset, everyone has a high chance of having a better future. Using cash only helps a lot as it makes you adjust and only buy stuff according to your priorities. It is easier to spend money by using debit and credit cards. Credit cards are even more worrisome to those people that have limited salaries. Having debts with interest because of groceries is a big NO.

Extra stuffs that are not part of our basic needs are not really bad sometimes. We just have to limit it according to our earnings. And savings for investments should be given priority over luxury.  

[Unbunplease]

With that right mindset, everyone has a high chance of having a better future. Using cash only helps a lot as it makes you adjust and only buy stuff according to your priorities. It is easier to spend money by using debit and credit cards. Credit cards are even more worrisome to those people that have limited salaries. Having debts with interest because of groceries is a big NO.

Extra stuffs that are not part of our basic needs are not really bad sometimes. We just have to limit it according to our earnings. And savings for investments should be given priority over luxury.  

The problem with cash is that you have to store it somewhere. And the more cash you have, the more space you need to store it. Of course, you need security measures.
The problem with non-cash is that you often have to prove its origin. Otherwise they can be suspected of money laundering.
If a person spends more than they earn, then either they are completely immersed in credit or they have dishonest income - hence, the attention of the tax authorities is assured.

[ChiBitCTy]

This is pretty well said overall and I agree with most of it.  I can't say I agree with "always use cash" because it's important in some places to build up credit, and you build up credit by showing you can manage debt.  If you're good at it, then your "credit score" goes up, and it will make your life easier and cheaper by getting better rates for homes, cars etc.

The number one issue I see people making is not using a budget.  Doing a simple monthly budget can easily put so much in to perspective. This is something I advise all my clients to do.

[axxo]

The lists that you had provided would help people to prioritize their expenses, they should categorize their wants and needs. Spending more than you earn can lead to financial problems such as debt, inability to pay bills and negative impact on your credit score. It is important to budget your needs and the needs of your family and oblige your self to live within your means only to avoid the consequences. Think a lot of times if it is your need or you just want before spending or buying. Discipline and control is the key to avoid over spending.

[Lubang Bawah]

To be happy the thing we can do is give a lot, don't be greedy human beings because no matter how much wealth or wealth will not be enough, by giving we can make other people smile and that is something that can make our hearts calm and happy.

[Fredomago]

With that right mindset, everyone has a high chance of having a better future. Using cash only helps a lot as it makes you adjust and only buy stuff according to your priorities. It is easier to spend money by using debit and credit cards. Credit cards are even more worrisome to those people that have limited salaries. Having debts with interest because of groceries is a big NO.

Extra stuffs that are not part of our basic needs are not really bad sometimes. We just have to limit it according to our earnings. And savings for investments should be given priority over luxury.  

As long as you know how to limit yourself then yes it's not bad if you will buy some additional things that supposedly not part of what you need, sometimes giving yourself a presence is part of happiness achieving something with your earnings, I believe it's not that much if you know how to balance your finances.

Spending more than what you can earn might be more on the side that you need to loan or you need to use your credit card to avail
the items or whatever things that you desire.

[dothebeats]

Spending more than you earn is something that you shouldn't do if you are just living from paycheck to paycheck. There are just tons of reasons why you should plan your budget ahead, and make sure that you still have something you can use on for a few days if possible. This is a very hard mindset to develop, but something that is worth it once you have mastered it.

It takes a lot from people to change their mindsets and habits to something that will benefit them in the long run, and this right here is one of them.

[Paul Pogba]

Nowadays more and more people don't care about other people, in my country a luxurious complex but only a wall away it will be easy to find poor people, only a few care about the poor, and I think the cryptocurrencies community should be able to make good things for this world, it's easy to send money in the form of cryptocurrencies should be used to help others in need.

[Strongkored]

👉👉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.

Currently, there are things that are even easier to do without a card, namely the paylater feature, and in my country, almost all major marketplaces have this feature, which allows people to shop beyond their limits because being able to enjoy this feature is easier than getting a credit card, but the interest is higher and it doesn't make sense but its convenience will make people want to use it especially if they don't have the right financial plan and also good self-control

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.

of all it is very important to have a financial plan and continue to comply with what has been planned by controlling yourself from desires that do not build at all other than just spending our money and more than what we produce

[xSkylarx]

Spending more than you earn is something that you shouldn't do if you are just living from paycheck to paycheck. There are just tons of reasons why you should plan your budget ahead, and make sure that you still have something you can use on for a few days if possible. This is a very hard mindset to develop, but something that is worth it once you have mastered it.

I can't really imagine those people who are spending more than they earn; just imagine how much their debts are because you are always caught short, so you have no choice but to borrow money to buy your needs. I am glad that I am not this kind of person because every time I do buy something for myself, I always think twice if it is worth it or not. Even clothes, I rarely buy unless I need a new one. It is really better like this because you won't go into debt and think a lot about how to pay it.

[glendall]

👉👉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.

but the reality is hard to deny, saying no is just theory and one day if you have more money you will definitely have what you want

I salute people who are committed in this matter, because from those I have met not far from my own husband, refuse when you don't have money to buy when you have money

[odunybiz]

I think this is not true. Your assertion is kind of  hasty in generalization. Life happens and things take different turns. While I acknowledge that it's not proper for kids to hawk to support their parents which is an abnormality, I also want to admit that most of those families didn't set out that way before life happened to them. I've seen enough of reality to conclude that life itself isn't theoretical like paper work but practical.

Imagine a family where the husband and wife are civil servants with miserable salaries that don't even come regularly as and when due. Imagine a family where the husband is a commercial biker rider (Okada) or tricycle rider (Keke) and the government bans such services in the routes he plies, and the wife sells in a market place demolished by government? Just keep imagining things and what such families would turn to for survival.

My point in all that is – Most times, families have such situations thrown on them.

To my own view.., no matter what happens, kids shouldn't be made to hawk things around. The danger involved is more than the benefits to the parent. I believe parent can choose an alternative means of living than engaging their children in street hawking.

[Sexylizzy2813]

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?

Yes. There are people like that. Extra money can be gotten from either tips( if you are the type that works jobs that tip) or probably given by a family member or friend.

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.

I think the best way to combat this problem is to try and live within your means. Do not outdo yourself cause that would only lead to you having nothing to fall back on during the rainy day. Some people are impulsive spenders and this can cause severe damage to your savings.

[Jody.Drummer]

Spending more than you earn is something that you shouldn't do if you are just living from paycheck to paycheck. There are just tons of reasons why you should plan your budget ahead, and make sure that you still have something you can use on for a few days if possible. This is a very hard mindset to develop, but something that is worth it once you have mastered it.

I can't really imagine those people who are spending more than they earn; just imagine how much their debts are because you are always caught short, so you have no choice but to borrow money to buy your needs. I am glad that I am not this kind of person because every time I do buy something for myself, I always think twice if it is worth it or not. Even clothes, I rarely buy unless I need a new one. It is really better like this because you won't go into debt and think a lot about how to pay it.

More expenditure than income is something that is very bad if it is done, it will make our lives not feel calm. As you said, we may be in a lot of debt to make ends meet, and basically living habits like that are bad habits that we shouldn't do.
Just like you, I am also a person who really thinks about if I want to buy something, I will think whether I really need that item, or is it just a temporary need that if I don't buy it will not have any effect. This is a consideration because we live not only for today, but we must also think about the future, including our future generations.

[eXtremal]

I think money management is very necessary, we don't have to spend all our money on purposes that are only for show. unless it is really needed for everyday life. I learned from the richest people in the world, they sometimes look simple but have giant companies in the world. wasteful is a feature of how you don't have the mentality of an entrepreneur, they have to have a lot of money with little spending.

[Joshika]

As we all know how it's hard to earn money as easier  to spent more money, avoid shopping in stores that you know will temp you to buy new thing which you don't need, purchase only which is required for our daily life . People are wasting their money in alcohol, tobacco,drugs etc which will get impact in health and  wastages of money and it also destroy our environment. Atleast we should have thought for future saving, save more than you earn for better future ahead.