Watch Your Spending

Monday, February 27 at 09:30 AM
Category: Personal Finance

It often feels like you never have enough money to buy everything you want. Whether you make $150,000 a year or you make $35,000 a year, you can still be just as hard up for cash. In fact, those with the higher incomes may be even more in need of money to meet their expenses.

The simple truth is it isn't how much you make, it is how much you spend. If you make $100,000 and spend $120,000, you are still in debt just as someone who makes $40,000 but spends $48,000 is in debt.

With easily accessible credit it has become very easy to overspend and not even know it. Years ago, when you were out of money, you were out of money. But, today you can easily create debt and not realize how much debit you’re creating. Granted, sometimes events happen that are out of your control. People get ill, lose jobs and face other emergencies. But, many people with debt and money problems haven't faced these emergencies. And if they do in the future, they will have very little to fall back on.
What you have to learn is how not to spend your money. Not where and when to spend, but how not to spend at all.

The more you make, the more you spend. Have you ever noticed that as soon as you get a raise, you have it spent? In fact, plenty of people who are planning on getting a raise go ahead and buy that new car or bigger home before the raise even comes. And it goes beyond the large spending. There is a whole new attitude with a higher income. You think you can afford the little things now, but those little things all add up quickly.
The key to controlling your spending is found in setting goals. When you have a concrete financial goal you are working towards, you are better equipped to avoid temptation. You may be more willing to drive your older vehicle a few more years if you know the money saved will help you retire one year earlier. Not buying that sweater may seem like a little sacrifice next to realizing the goal of remodeling your kitchen.
When you are faced with the temptation to splurge, think about your goal. Find other ways to spend your time instead of shopping. If you never go in the store either in person or online, you won't spend the money.
Remember, each dollar you spend is costing you hundreds, if not thousands, of dollars in the long run. Spending is the problem, not the lack of money.
The most important thing you can do for your finances is to learn to budget. Take the time to make a budget work for you. A good budget will let you plan for the future, while keeping you aware of exactly how much money you have right now. It will help you see what you’re spending your money on and what you could be spending it on.
As you create a budget and watch your spending, you can make your income, big or small, fit your needs. 

Tags: Budgeting, Financial Education, Savings
Christene A OToole on 3/3/2017 at 9:08 PM
Thank you for the message. Is there anyway my SS check could be deposited on the 1st day of the month? I keep getting overdraft fees during those first 3 days until you deposit it in my account which is costing me hundreds of dollars a year. I need every cent as I am on a fixed income and my mortgage payments have skyrockeceted. Can you help me to catch up on one payment of about $900 which would help me avoid foreclosure and high fees. I appreciate your help. Christene
Arvest Blog Admin on 3/6/2017 at 2:59 PM
Christene – Thanks for reaching out. We’ll have a member of local management contact you to discuss your options. Thanks for allowing us to serve you.

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