In present times, it is becoming more relatively difficult to spend less than you earn. Despite a lot of personal efforts to minimize your spendings, Most times you will notice that you tend to spend more and more than you planned for, even if you earn a lot, there still seem to be something that makes us spend more than we actually earn. Why is that so?
It is often rare to find someone who keeps half of their earnings as savings. It takes a lot of discipline and determination for you to curb the urge of spending higher than your budget or earnings.
Spending less than you earn is easier said than done. You might implement budgets, set up auto-debits, and carry cash, but all of those tactics address the mechanics of spending without tackling the bigger picture. There are many people out there burying themselves in debt (spending more than they earn) or living purely paycheck to paycheck (spending exactly what they earn).
Sometimes, when you go for shopping with a list of budget, there is still this urge to want to buy something extra that has caught your attention. This is already going above your budget, thereby spending more than you have originally planned for. Hence, spending above what you are having at hand with you.
One reason we tend to spend higher than what we earn is because, we do not keep track of our spending habit, or the rate at which we spend money. It will be more economical and helpful to keep a notebook in your pocket and write down every expense you have. The simple process of doing this will make you think twice about unnecessary expenses.
When you do have a month’s worth of expenses.written down, take a careful look at them. Ask yourself whether or
not each of these expenses actually contributed to the value and joy of your life. That process will offer a lot of insight for you as to where your spending is going to waste and where you need some adjustments.
Sometimes we are too quick to take decisions, especially when it has to do with money. If you want to acquire something new, do take your time to think over it again and again. You can afford it, does not mean you really need it. Often times, we are plagued by the impulse to act now.
Want to sign on the dotted line for that new car? Leave the dealership and sleep on it. Delaying your decision-making can help you step out of the stress of the moment and see the bigger picture more clearly.
Aside some of these personal faults, the kind of bank we operate accounts with, are not helping matters. Some of us need to get an account with a good bank that will tend to support you financially and not end up using your hard earned money to build an empire for themselves. The vast majority of Nigerians are with banks that don’t treat them very well. No interest at all on their accounts. Tons of fees for ATM use and maintenance. A tiny interest rate on savings accounts. Monthly usage fees of all kinds. All of these things are a waste of money. Switch your accounts to a bank that respects you.
There are of course some benefits and good reasons why you should be concerned about your spending rates and why your spendings should not be more than what you earn. Some of these reasons include, but not limited to the following:
- You eliminate your debts.
You tend to save more
Your stress level falls.
You’ll be more able to explore possibilities around you.
In a nutshell, If you really want to buy yourself a more fulfilling life, it’s not how much money you earn that matters, but figuring out the right way to spend it. (You can read more on how to cut-down your daily spending)
Thanks for reading.