Bad Habits Which Make You Spend More than What You Earn

One of the most common mistakes -and a very prejudicial one – is to spend more money than what you are currently earning. When you do this, you are making your debts increase incredibly fast month by month. Unless you find a way to stop it, you will start seeing the consequences of bad management in a short while.

When you think about it, it has happened to all of us at least once in a while. You get your salary, and in two days -or less- it is already gone. What will you do for the rest of the month? Where will you get the money to pay for your needs? Most importantly, people tend to start using their credit cards recklessly once this happens without thinking about the consequences. This puts your whole life at risk, and you should be thinking of what to do when you spend more than what you earn.

To start this article, we will take a look at the common bad habits which people have when it comes to their money. Therefore, their finances are greatly affected and they find themselves in a very hard position very soon. When you stop for a while and think things carefully, everything will have a better outcome. Not everything is lost. Let’s see:

Most People Don’t Make a Budget

Let’s face it. Most of us end up spending more money than we have because we do not make a budget. It does not matter what you are trying to buy: we must know how much we’d be spending. Most people certainly don’t care about it, and end up exceeding their total funds.

Young woman with laptop and credit card outdoors. Internet shopping concept

When you make a budget, you will know how much you are spending or earning each month, since it needs to be updated constantly. Therefore, you will have a better financial situation. However, there are many people who don’t put this into practice and end up in the same old habits. Each time you buy something, you should write it down. Hence, you will be putting your budget into practice.

Bad Communication

If you have a spouse, then it is very likely which you both are sharing your expenses. Sometimes, one of them relies economically on the other, which means there is plenty of room for overspending.

People who live together constantly tell each other what they should be using the incomes for, but this does not mean they are doing it properly. When you start living together with someone, you should be deciding together which priorities you have. Therefore, you will know which each other’s needs are, and how to spend your money.

Every time you go shopping, you must decide how much you’re going to spend and what you’re going to buy. This does not apply for couples solely; this should be put into practice by everyone!

You Use a Credit Card Recklessly

When it comes to credit cards, most people think it is an amazing idea to use it constantly, but when they start using it, they pay little attention to how much they are spending. When you use credit cards this way, you’re putting months -and even years- of debt in your shoulder. Therefore, what we recommend is to stop using credit cards.

When you are aware of how much you earn, and what your necessities are, then you will be able to make a proper budget to help you with managing your incomes. Some time will pass until you see how better things are after getting rid of these habits.


What Should You Be Spending Your Money on to Be Happier?

When it comes to money, there are certain people who are obsessed with getting rich, while others are struggling to survive. There is one thing people can be sure of: spending money recklessly won’t bring them happiness in the long-term. There are many people out there who believe which an enormous amount of money equals permanent happiness. Things do not work this way in the real world.

If you currently have a great salary or own an amazing business which brings you several benefits, you should know what you can do with your money has more importance than the total amount you are spending. If this is your case, you should know more than one person would like to be in your position. In the modern world, things are not as easy as they seem.

People have a wrong idea about progress. They think which the most zeros to the right side you have in your account, the more successful you are. They often tend to compare their progress with other people’s success to see who is greater, which means, according to several people around the world, if you have more money than one person, then you are more successful than them.

However, what will happen to your money when you pass away? Will you be buried with your total funds? Do you want to be the richest person in the cemetery?

To this point, you already have an idea of what we are trying to say. In fact, according to several financial assistants, most rich people have no idea of what to do with their money, less they know about where to invest it. If this is your case, or at least you’re following said direction, through this article we will give you some advice which may be helpful for you to learn how to spend your money in things which matter and will bring you happiness in the long-term.

There are certain ways which you can spend your money, and they can bring you plenty of positive emotions in the future. The memories you make doing certain activities, the feelings they evoke on you, which is what matters the most, are more valuable. After all, buying something comes with the risk of losing it. However, if you spend your money on experiences, hobbies and more, it is very likely which you will be telling stories about how you felt back then to people in the future.

There are many recognizable figures in the lists of most rich people around the world. They are known for spending a certain part of their money in philanthropy. Most people think of it as a marketing strategy or a way of “cleaning their public image” and appearing “nicer” to the public. However, in most cases, the reality is very far from the previous statement.

Most of those people are in the same position; they do not know what to do with so much money. Like we said previously, memories last forever. It is very nice to help someone and see how much your support has helped them to be successful. This is another way which you can use your money if you still you have no idea of what to do with it: to support people’s development and well-being.

Whether you have earned your current position by effort or without it, you should still think about what you can do with it for you, and the world. Having lots of zeros in your account will not bring you more happiness, for sure.