Do You Tend to Over Spend?

One of the trends thatare going on among family households is that they spend unconsciously.  This happens for both what we would call fixed expenses, such as rent, gas and utilities, as well also for flexible expenses like dining out, household purchases, and travelling.

You are usuallyconscious about the money that you spend if you are low on cash, or are earning less. Your thoughts often revolve around the calculation of your net pay on a biweekly or monthly basis and worry about how you will make this fit with the monthly bills and groceries. You long for the day when you actually have enough money that can allow you to splurge on the things you’ve had your eyes on, or for that vacation that you’ve planned for a long time.

And then, there comes a point in our liveswhen we begin to make enough money to cover the bills, and still have a little extra to spend on flexible expenses. Because of this, your lifestyle also changes as your income – you move or get a larger house, maybe get a car, buy some gadgets, and buy more clothes to complement the changes in your life. You feel like you have earned this money, and then the worries go away. You are no longer concerned whether your salary will cover the bills – because you know that you make much more than that now.

However, the truth is that most people don’t understand that things can change in an instant, and that they will get used to such lifestyles and have big problems if their incomes decrease. Unfortunately, this is the case right now where many of us are making much less than what we did before, and yet we continue to spend as if we were earning more.

With this, it is recommended that you consider your spending habits and go through each of your bills for 3 months. Now that online bill payments are here, we hardly read them anymore – so long as we know the totals and pay them off. However, it is best that you look at your purchases and think about where your money is going, and where you can cut corners to try and save up.

The mind’s unconscious can be very powerful.  Thus, you need to make sure that it doesn’t take your spending habits out of control.