SPENDING MORE THAN YOU EARN

[Bitcoin2009]

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.

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.

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[Tony116]

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.

Well, I understand what you say. But not everyone is as lucky as you. There are people who work hard but get very little money and behind them is a whole family counting on those meager wages. Therefore, spending more than they earn is inevitable, even if no one wants to.
I have seen many people work more than 16 hours a day because of the family's burden but still can't afford to take care of their family, let alone buy a new shirt. So don't say that anyone who spends more than they earn is a waste of money or that they are mindless playboys.

[Wong Gendheng]

Most people experience that expenditure is greater than expenses, this is because many people cannot adjust expenditure, they cannot hold back to buy things that are not yet reached so that sometimes they are in debt, from now we have to stop the bad habits so that they do not owe anymore in the future and expenses can be in accordance with income.

[Swordsoffreedom]

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.

Tips are also money they make themselves, how can it be called spending more than earning? And, do you give your loved ones money regularly? Especially those who are giddy, lazy, and dislike working. I don't think someone is kind enough to give money to their loved one without reason or regularly. I also really don't understand how we spend more than we earn? Even if it's borrowed money because if you can't afford it, no one will lend you money continuously so you can spend as much as you like.

[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.

Well, I understand what you say. But not everyone is as lucky as you. There are people who work hard but get very little money and behind them is a whole family counting on those meager wages. Therefore, spending more than they earn is inevitable, even if no one wants to.
I have seen many people work more than 16 hours a day because of the family's burden but still can't afford to take care of their family, let alone buy a new shirt. So don't say that anyone who spends more than they earn is a waste of money or that they are mindless playboys.

What I mean is that those people who spend more than they earn on their wants. I do know people who are spending more on alcohol and cigarettes than their salary. It is common sense that there are really people who spend more because they have a lower salary, which I am one of it as I am not a rich person. I am also the breadwinner right now, and a lot of my family members are relying on me. Also, it is always a waste of money to spend more if you put it on useless things that you are constantly buying, like alcohol, cigarettes, and expensive clothes, right?

[Tony116]

What I mean is that those people who spend more than they earn on their wants. I do know people who are spending more on alcohol and cigarettes than their salary. It is common sense that there are really people who spend more because they have a lower salary, which I am one of it as I am not a rich person. I am also the breadwinner right now, and a lot of my family members are relying on me. Also, it is always a waste of money to spend more if you put it on useless things that you are constantly buying, like alcohol, cigarettes, and expensive clothes, right?

There are also some people around me like you said, they spend frivolously on daily bad habits, but we can't because of those who don't think of others, we can equate everyone with the same. Because there are people who really work hard to feed their families, but unfortunately, they never make enough money to take care of their families. Maybe they weren't lucky, or God was testing them.

Honestly, no one wants to be poor, but life is inherently unfair. There are people born at the finish line, but there are also people who work hard all their lives and never have enough to eat.

[cryptoknightt]

We have to be able to control ourselves so we can't waste money. Learn to say no. Sometimes we can't refuse other people's invitations, such as parties and things that waste money. We have to be good at managing our own money. because if we spend money that doesn't match our income then we will work forever until we are old there is no emergency pension fund and someday we will be in trouble in the future do you want that to happen?

[karmamiu]

Most people experience that expenditure is greater than expenses, this is because many people cannot adjust expenditure, they cannot hold back to buy things that are not yet reached so that sometimes they are in debt, from now we have to stop the bad habits so that they do not owe anymore in the future and expenses can be in accordance with income.

This is because people are expectant to their own salaries, just because they have something to wait for every month, they will spend money or even exceed the limits of their own salaries. This is also why they become in debt with whatever corporation is offering any lending. I am not someone who criticize people just because they lend money coz there are people who needs it sometimes for emergency purposes, 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

[raidarksword]

Spending more that what have earned is really a bad habit and bad financial mindsets that's why many people are broke because of it. Being contented and being thrift is not a bad thing and buying unnecessary things should not be priority on times like theses wherein we have a high inflation rates. People should practice more NEEDS than WANTS.

[BobK71]

We have to be able to control ourselves so we can't waste money. Learn to say no. Sometimes we can't refuse other people's invitations, such as parties and things that waste money. We have to be good at managing our own money. because if we spend money that doesn't match our income then we will work forever until we are old there is no emergency pension fund and someday we will be in trouble in the future do you want that to happen?

Of course, those who don't keep awareness will suffer financial costs at some point. Moreover, if one cannot match the expenditure with the income, then he will have nothing to do but incur debt. Every person should remember that having more money does not mean spending more. He can spend what he needs. But never overspend. There are many people who turn spending more into a habit but should expect to revert to that attitude immediately. Otherwise he may get into trouble which will make it difficult for him to recover.

[nesty]

Some people find it difficult to budget their expenses that they tend to end up spending more than they earn. One common reason is that they may lack financial literacy or knowledge on how to manage their finances effectively. Additionally, some people may struggle with impulse spending or have difficulty in controlling their spending habits. It's also possible that some people may have a lifestyle that exceeds their income, making it challenging to make ends meet. We should need to track our spending habit so that we will not exceed beyond our budget. Create budget based on what we need, make an outlines for income, expenses and also savings. Prioritizing expenses can help as well in managing your budget, make sure to prioritize the essential needs before thinking of spending what you do not need. Cut off also unnecessary expenses like eating out which can be more expensive.

[Fredomago]

Spending more that what have earned is really a bad habit and bad financial mindsets that's why many people are broke because of it. Being contented and being thrift is not a bad thing and buying unnecessary things should not be priority on times like theses wherein we have a high inflation rates. People should practice more NEEDS than WANTS.

In terms of exceeding from what you can afford to the point where you need to lend or loan just to fill what you want, that's something which will really hurt your finances, it's better to keep yourself away from extra expenses as it will allow you to save some from your salaries, though we really can't generalize how things can happen, some are just doing those extra expenses due to the desire of having material things that they really wanted to own, while for some it's just an emergency thing that they need to spend extra to fill something unexpectedly.

[xSkylarx]

Spending more that what have earned is really a bad habit and bad financial mindsets that's why many people are broke because of it. Being contented and being thrift is not a bad thing and buying unnecessary things should not be priority on times like theses wherein we have a high inflation rates. People should practice more NEEDS than WANTS.

In terms of exceeding from what you can afford to the point where you need to lend or loan just to fill what you want, that's something which will really hurt your finances, it's better to keep yourself away from extra expenses as it will allow you to save some from your salaries, though we really can't generalize how things can happen, some are just doing those extra expenses due to the desire of having material things that they really wanted to own, while for some it's just an emergency thing that they need to spend extra to fill something unexpectedly.

The purpose of having a loan should be considered like if its for emergency then its good but if for material things that wont help you then i think it was bad idea and also having a loan is difficult because you really need to pay it monthly or bi weekly which makes more caught of short in your budget and it is really difficult because it has a chain effect that because you caught of short on budget you will now borrow money to others and it still continues until you are hard time paying it off, I've been there that time the only thing that survives me was that extra income and stopped borrowing money.

[smile1218]

I think it is not advisable to spend more than you earn. This can lead to financial difficulties and debt, which can have a long term consequences on your financial stability and well being. When we spend more than we earn, we are essentially leaving beyond our means. It means that we rely on credit and borrowing money to finance our lifestyle which can quickly unsustainable. The interest fees with borrowing money can add up quickly making it even harder to get out of debt. To avoid this kind of problem we need to create a budget and stick with it. If we can track our income and expenses and making sure that we are not spending more than we earn we can avoid this kind of problem. If we find it difficult to do it let us find other ways to be able to increase income to reduce expenses.

[Fara Chan]

I think it is not advisable to spend more than you earn. This can lead to financial difficulties and debt, which can have a long term consequences on your financial stability and well being. When we spend more than we earn, we are essentially leaving beyond our means. It means that we rely on credit and borrowing money to finance our lifestyle which can quickly unsustainable. The interest fees with borrowing money can add up quickly making it even harder to get out of debt. To avoid this kind of problem we need to create a budget and stick with it. If we can track our income and expenses and making sure that we are not spending more than we earn we can avoid this kind of problem. If we find it difficult to do it let us find other ways to be able to increase income to reduce expenses.

It's actually not that complicated to set a budget and stick to it either for ourselves or for each person in life. Because those who know income and expenses are each individual or ourselves, not other people so that everyone can certainly make arrangements on a budget for their own life and continue to stick to it if each of us doesn't want to have debt in life. So actually this is not too complicated to think about because when someone knows how much money he can make in his daily life or a week or a month, of course he also knows where the money will be used or spent by himself.

This is why I say that it is not too complicated to think about, even though sometimes some people are also not too easy to do it because maybe some people still can't move on from their own extravagant nature. Even though the unwise attitude in using money and the wasteful nature that exists in each of them is something that can be changed slowly or changed over time if they want to live a better life without making loans in any form in their lives.

[Halime Anatolia]

I think it is not advisable to spend more than you earn. This can lead to financial difficulties and debt, which can have a long term consequences on your financial stability and well being. When we spend more than we earn, we are essentially leaving beyond our means. It means that we rely on credit and borrowing money to finance our lifestyle which can quickly unsustainable. The interest fees with borrowing money can add up quickly making it even harder to get out of debt. To avoid this kind of problem we need to create a budget and stick with it. If we can track our income and expenses and making sure that we are not spending more than we earn we can avoid this kind of problem. If we find it difficult to do it let us find other ways to be able to increase income to reduce expenses.

It's actually not that complicated to set a budget and stick to it either for ourselves or for each person in life. Because those who know income and expenses are each individual or ourselves, not other people so that everyone can certainly make arrangements on a budget for their own life and continue to stick to it if each of us doesn't want to have debt in life. So actually this is not too complicated to think about because when someone knows how much money he can make in his daily life or a week or a month, of course he also knows where the money will be used or spent by himself.

This is why I say that it is not too complicated to think about, even though sometimes some people are also not too easy to do it because maybe some people still can't move on from their own extravagant nature. Even though the unwise attitude in using money and the wasteful nature that exists in each of them is something that can be changed slowly or changed over time if they want to live a better life without making loans in any form in their lives.

Judging from income and individual needs, it must be different for everyone. In my opinion, extravagant nature is not born without a clear reason. If seen by others it can be considered wasteful, even though what is issued is a necessity, even though it is secondary. Indeed, in the end it is the one who feels it. It's complicated when we lack funds to cover it and if there are funds it's even more complicated that maybe what the OP wants to convey to the public here.

[kotajikikox]

👉👉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 matters all here , because if we can provide proper budgeting then there is nothing we need to save our asses for the future because there are so many people that tries to do anything but they missed having a right budget to spend each time or at least daily manner.
only use extra cash if we are in badly needed .

[waONE]

👉👉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 matters all here , because if we can provide proper budgeting then there is nothing we need to save our asses for the future because there are so many people that tries to do anything but they missed having a right budget to spend each time or at least daily manner.
only use extra cash if we are in badly needed .

Indeed, providing proper budgeting will make it easier for us to manage it,
but for me it's still important to have savings either for the future or for unexpected things,
with proper budgeting certainly aims to avoid wasting money.

[siniminomorocomunisakito]

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.

So, the question is do we need to avoid all of that. Namely also the need remains from us ourselves how to prioritize all of that by clarifying whether the nature is necessary or not necessary. If necessary all necessary of course. Yes, new models are always born and if we obey, we have to look for more. that's the only way out. if you are mediocre, it's like trading that we can afford to invest without adding to the financial burden, let alone using borrowed funds from other people, it becomes complicated in the end.

[nesty]

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.

That are good ways to easily stop spending more than you earn. In the current situation of our society now with the inflation and recession around we need to be wise in spending our money specifically our needs. We need to be practical in spending because the huge price increase in our daily needs is no joke, I know a lot of us experiencing that price increase in food, utilities etc. Before we buy anything we should think first if it is a need or a want. If we will be wise in spending our daily needs we can avoid borrowing or applying for a loan. To be able to do that we need to have a control and discipline within ourselves. If your friends do have a high standard of living then we should not go with the flow because it would cause us a problem overtime. The list you had provided are good ways to control spending. Creating a budget, use cash only, shopping list, control the grocery and the best part is learn to say "NO".