Why would you ever, besides an emergency, spend more money than you make?
2006-10-21 19:52:35 · 17 answers · asked by MattyG 3 in Business & Finance ➔ Personal Finance
You realize, I hope, there may be extenuating circumstances
to each person's problem in life...
It is not just a matter of oh dear I spent too much...
For example, me, I worked at my job for 23 years in newspaper advertising, and then became disabled with my spine and had back surgery and it didn't fix the problem...
I have now been out of work over 4 years and even though
I never intended to be out of work or not pay my bills,
it happened anyway...
I had to go through bankruptcy to get the creditors off my back and out of my life so they couldn't contact me every few hours like they did...
I had to pay a lawyer and show proof of my disability with x-rays and doctors statements, but I did manage to get out of the debts, and while I am still out of work today, I no longer have that worry over my head...
I could never pay it being out of work...
I live on social security and I have to pay doctors and medicine and food and that's all I can afford...
My husband pays for our home and other bills, but he was not included on my debts as they were mine alone before we married...
So to say I was in over my head is not true, because I had no problem paying my bills when I worked...
But you take away my job and pay and I have no way...
Also some people, get in over their head with emergencies like you said...
Cars break down, medical costs and surgeries and child care and even gasoline...
Home repairs and anything that needs to be fixed immediately can set you back more than you anticipated...
That's life my friend...
It happens!!!
2006-10-21 21:01:52 · answer #1 · answered by aspenkdp2003 7 · 2⤊ 0⤋
It's a matter of self-control. Spending money feels good. Earning money, which for most people requires work, does not feel so good. So people who are short-sighted spend more than they make. What they are missing is that while this might lead lead to short-term happiness it will most certainly not lead to long-term happiness.
2006-10-22 04:00:09 · answer #2 · answered by frugernity 6 · 2⤊ 0⤋
Please this is an easy question to answer.
People spend more than they earn because they make purchasing decisions without the END in mind.
You see, if American's really sat down and established, adhered to, and periodically measured their purchasing behavior against their budget. They would have MUCH LESS drama.
However, if I buy things without a budget and desensitize myself to the value of money through debit cards and credit cards, it is relatively easy to break my budget and spend beyond my means.
If people want to spend less than they earn, then they have to carve out an existence BELOW their EMPLOYMENT INTAKE (after taxes). Most people don't want to do this because this kind of existence excludes several seemingly, desirable middle-class accoutrements.
People fail to plan their expenditures. When they fail to plan --
they plan to fail. It is as simple as that.
The beginning of debt starts when you fail to "think it through".
People also spend more than they earn because of marketing. Marketing is nothing more than the process of convincing people to buy things they don't need with money they don't have.
When you recognize marketing for what it is and critically review and RECOGNIZE the sublimal messages marketers try send you, you are half-way on living within your means.
Finally, people spend more than they earn because they like NICE THINGS and they figure they DESERVE NICE THINGS regardless of costs.
It's not a money issue. . . it's an entitlement issue. When you put your entitlement thinking above discretion, prudence, and common sense, you are immediately setting yourself up for a let-down!
You may deserve nice things but you sure as hell don't deserve the debt related to it! And people try to disconnect fromselves from the long-term consequences of a hasty decision.
2006-10-22 03:54:00 · answer #3 · answered by DaMan 5 · 2⤊ 1⤋
With the cost of living constantly rising and income is not, its easy to spend more than you earn. We as people have wants and needs and as such, have trouble separating the two.
I hope you can create a plan to live by and on and stick with it!.
Lacy
2006-10-24 20:46:52 · answer #4 · answered by lLcy 1 · 2⤊ 0⤋
One reason is the widespread availability of credit. With so many credit card offers out there, many people are tempted to spend simply because they can. Also, credit allows them to delay payment so that it feels like they are losing nothing at the time of purchase.
2006-10-22 04:43:37 · answer #5 · answered by s. wong 1 · 2⤊ 0⤋
Spending money is way more fun than earning it !!
2006-10-22 03:00:38 · answer #6 · answered by nikkibicci 2 · 2⤊ 0⤋
Because the banks are giving credit cards and creditors are giving it but maintain a good credit history else you will be trouble
2006-10-22 02:59:47 · answer #7 · answered by Anonymous · 2⤊ 0⤋
because people work hard and want to buy nice things i try to watch my money but at the same time you only live once
2006-10-22 03:01:06 · answer #8 · answered by Anonymous · 2⤊ 0⤋
Because people have unlimited desires.
Besides, they dont have the financial knowledge to fulfil these desires by buying assets instead of liabilities. Any liabilities should be bought only on the returns of the assets one has purchased. That way one can safeguard wealth and fulfill one's desires.
2006-10-22 02:55:51 · answer #9 · answered by Anonymous · 0⤊ 2⤋
We live in a capitalistic country. Supply and demand. This society perverts what is actually a want and what is actually need causing the week minded to believe that they need what they want and want what they need (go buy a new pair of Jordan's cause they "need" them then get home and want food which is actually what they needed in the first place).
2006-10-22 02:56:22 · answer #10 · answered by BUDDY LUV 3 · 1⤊ 2⤋