For years I have heard the phrase the more money you make the more money you will spend. Sadly enough a large portion of people believe this myth and follow down the path of brokenness. If you ever plan to be financially successful you have to stop spending every penny you earn each month. It’s an easy concept to tell people, but a very hard concept to follow. Let’s get to the bottom of why we overspend and what we can do to solve the problem.
For most people the problem starts with the easy access to credit. Everyday I check the mail there is at least one and sometimes up to 5 new credit card offer from a different bank or financial institutions. Most of them offering 0% balance transfers for 12 months or a very low fixed rate for the life of the loan. They also offer no interest on purchases for up to one year, this is the worst. You can buy anything you want (up to your credit limit) and not pay any interest on the borrowed money. Sound like a great until the one year is up and you have racked up thousands of dollars in credit card charges that you no longer have to money to pay for. What do you do, open up one of the 0% interest balance transfers for one year credit cards and start the process over.
The next problem for overspending is temptations from friends, family and coworkers. BrotherÂ Jim just got a new HD television to hang on the wall over the fireplace. You start thinking about how hard you work everyday and don’t have a new HD television set, so what do you do? You get in your head that you can afford to go buy yourself a new tv, but you need a bigger one than Jim because you work harder. You do need to enjoy your life, but enjoy your life as much as you can afford, debt is not fun!
Finally, overspending is very similar to overeating. Some people buy a new pair of shoes just to feel better about themselves. If you’ve had a bad at work or had a fight with your spouse what can make you feel better than spending some money? We sometimes spend money and buy something that will please us to take our minds off something that is bothering us.
Don’t get caught up in these financial traps. Be sensible about spending your money. Think before you jump into any financial transaction. Ask yourself is this really what I need to do or am I doing this for a dumb reason? Stop overspending your hard earned money and get to the bottom of overspending!