Top 4 Reasons Your Expenses Surpass Your Income
Whether you’re a millionaire or an individual with average income, everybody makes the same mistake when it comes to balance between income and expenditure. Many of us have a common notion that earning more money ensures a happier life – but this is not right. If you want to lead a more fulfilling life, you can surely do it, irrespective of your income. Whether you earn it by forex trade in or anything else, you need to know the right way of spending your hard earned dollars.
And if you don’t know this, there is no ambiguity that your expense will surpass your income. Here are some reasons that add up to your expenditure.
1) Buying lot many things without having experience – Today anything can be bought with a credit card. And with access to Internet you can easily get swept up by almost everything. But if you realize that having a $50 with your buddies or family is worthier than buying a new iPhone or a huge screen LED TV. To conquer your buying impulse, you can ask yourself some questions like,
- Does the thing help me be together with others?
- Is this a great opportunity?
- Is this something I can’t compare to anything I have done before?
- Is this going to make a nice story that I will cherish for rest of my life?
2) You emphasize more on earning money than buying time – People often get caught up in whether to work hard to save money or work hard to earn more money – but what really matters is ‘time’. Usually, people who earn more don’t spend time innovatively on a daily basis. People with more money spend their time on activities like commuting, working etc. On the other hand, the penny pinchers take saving too far by trading their time for some sort of financial payoff. For example, they can stay up all over the night on a Kayak to save only 20 USD on flight fare.
3) You’re allowing yourself to have too much of good things – When people get access to unlimited financial resources, they find it stupidity to deny pleasures that you have come to enjoy. Be it a new set of jewelry or a bottle of expensive wine during dinner every night – they just can’t control their urge. And ultimately a time comes when they reach the point of saturation and then they kill their potential to make themselves happy anymore. Unfortunately, this is a very common phenomenon. When people get more exposure to something, its impact gets reduced. So it is always recommended that enjoy things that you can afford seldom. It will bring happiness for longer.
4) You’re spending on you only and not for others – Happiness increases if shared. So share your happiness with others. Many of us believe that the happier we are with ourselves, the more happiness we can bring to others. But this is not always true. Rather make your dear ones happy and you can bring more happiness for yourself. Most Americans spend lion’s share of their personal budget for their own. So not your dear one only, share happiness with people with those who need it. For example, you can donate a bag of your old clothing to a charity foundation if you can’t donate a new one. Just do it and see how you can make yourself happy.
At the end of the day, try to live within your means to ensure happiness for longer.
Author’s Bio – Jonny Pean is a finance industry blogger. From how to get more on your investment or forex trade in – he writes on a wide variety of topics.
Share this:
Category: Family Finances
