How to tell if you are Spending too much Money

One of the tell-tale signs that you are not managing your finances very well is when you often find yourself at the tail-end of the queue at the automated cash dispenser machine. It would be good to note also that it does not matter whether you are at the beginning or at the end of the queue, the point here is that you are out of money again, and you need to go for another top up.

It is not a matter of not taking out enough money each time, but rather the frequency of going to the bank to draw cash for purchases. It is one of the most common areas where people tend to fail in, and that is the area of money management. Being financially prudent in hard times is not too difficult, it is hard to spend more than what you have in your wallet. The trouble starts when people start living off on credit. The perennial buy now and pay later mantra of the credit institutions is reason why the world today is suffering the effects of overspending.

Having a budget works wonders for people who tend to overspend. While limiting the amount of cash you carry with you with each outing to the grocery store might help a little. The culprit here is often the credit card. Learn to plan your purchases so that you know exactly what you need to buy so that you will not end up with twenty other purchases that you bought on impulse. Money management skills are rarely taught anywhere because they were often seen as an essential skill that most people would pick up once they started working.

However, there is nothing that prepares us for money management in the current educational curriculum. Money management skills are essential in instilling the discipline that is needed. There is a need to understand the differences in the concept of the value of money as opposed to thinking that it is alright to live on credit . The world’s financial system has taken two steps back when it changed its model for wealth creation, and that is to create money by extending credit facilities. There is now a shift from the value creation process to simply creating more money by lending.

If you have fallen into the cracks and find yourself buying more on credit as opposed to using cash, then it is another tell tale sign that you are spending beyond your means and that you will need to start to cut back on your expenditures. The world does not function on a lifestyle of credit, something’s got to give when the sources of funds eventually dries up. That is when your financial woes will also come back to haunt you.