Why is it so Easy to Spend More than You Make?

It is incredibly easy to spend more than you make, because there is always something new to buy. Not only do you have essential bills to pay each month, you also want to be able to spend money on yourself and enjoy having the latest technology or going on holiday whenever you feel like it. Unfortunately, unless you're rich you either have to save up to be able to make a significant purchase or otherwise rely on credit. When you have easy access to credit, the temptation is always there to use it, even though you end up paying more for it in the long run.

The trouble is you want to be able to buy things straightaway. You don't want to have to wait to be able to afford the latest games console when Christmas is just around the corner and your child desperately wants one. You may be able to save up for a television or computer, but by the time you've saved some money technology may have moved on and you have to save for even longer to get the latest, most up-to-date model. It is extremely frustrating and so you may be inclined to simply put it all on your credit card and worry about it at a later date.

However, when that later date finally arrives, you can find yourself with a problem on your hands. Clearly, if you're still earning as much as you always have, you probably won't have had a chance to put some money aside, so that you find yourself with a credit card bill and an overdraft and no way of being able to pay them off without having to give something else up. You may have to spend more carefully at the supermarket and to cut down on luxury items. You will still have to pay the mortgage and utility bills regardless of your financial situation, though.

This is where you can find yourself getting deeper into debt, especially if something like your washing machine suddenly breaks down and needs replacing or you are made redundant. You end up in a situation where it becomes harder to afford even the essentials in life and this is when you can start feeling so desperate that you take action which will only lead to more aggravation later down the line. You may go an unscrupulous loan shark, for instance, who offers you a short-term solution to your money problems, but actually leaves you in even greater debt in the end.

To prevent such a situation arising it is obviously worth being more careful with money and trying not to rely on credit. You have to try to avoid being influenced by advertising into buying things you don't really need and by the fact all your friends and relatives have more than you do. If you can't afford to have the latest items on the market you have to learn to accept that you have to save your money so that one day you can. It might be tough to restrain yourself when you're in a shop or shopping online, but by spending within your means you will save yourself the headache of getting into debt.