9 ways to spend money that keep the poor poor

The following 9 common spending mindsets cause many people to fall into a situation of lack of money.

"I have the right to treat myself kindly"

When tired, many people often have the habit of buying themselves something to "relieve their sadness", with the consolation "This is a difficult period and I have the right to treat myself kindly".

This action is only reasonable when you have enough money and do not spend it all at once. But if you make a transaction by buying on credit or using a credit card, it is unwise spending.

Everyone has the right to do what makes them happy, but think carefully about whether the extra spending will actually bring happiness. What you really deserve is less debt, a bigger emergency fund, and better sleep because of it all. You also deserve financial security and future money, but only if you let go of the "because you deserve it" mindset.

"Wedding only happens once in a lifetime"

“A wedding is only once in a lifetime” seems to be the mantra that keeps people willing to borrow money for this special occasion without thinking how absurd it is.

Weddings are not inherently a source of extra money, and there is no guarantee that all expenses will be covered. If you overspend, the loan will stay and you will have to start your new life with unnecessary debt. This is something that lovers do not dream of. Moreover, disagreements about money are the main cause of quarrels between couples.

"Everyone only lives once"

This saying is often used when a person wants to spend all his money on something he thinks is worth it. However, no one knows what lies ahead and this is why it is really necessary to save money instead of spending money thoughtlessly.

Impulsive buying and buying things that you don’t really need can wreak havoc on your budget. It could be something as small as a bag of potato chips or it could be walking into a showroom and buying a new car. It all has a huge impact on your finances.

"It's a special occasion, I shouldn't miss it"

There are many things to spend money on in life. However, situations are different and you can distinguish when spending is really necessary and when you should restrain your extravagance. It is best to make a reasonable spending list.

You should only put really necessary things on the list such as: spending on health, spending on life or risk prevention... In some other non-urgent cases such as buying an expensive pair of shoes or a dress just to attend a wedding or company party... need to consider carefully.

"I earned this money so easily, let me spend it so easily"

Many people, especially young people, tend to spend their money easily. This type of thinking is the reason why most people who inherit a large sum of money or win the lottery often spend it all very quickly and soon return to a life of poverty.

"That thing is on sale!"

We tend to defend our choices, for example when we buy something expensive. The usual justification for this is: "I got it for a good price, on sale."

When you're in a sale, it's important not to get caught up in the excitement of the crowd. It's a good idea to make a list of what you should and shouldn't buy every time you enter the store. And always ask yourself when you see an item marked on sale: "Would I buy this if it weren't on sale?"

"I didn't read any reviews. Chances are the more expensive item will be better"

Sometimes we spend a lot of money to follow a trend. For example, when replacing or buying new furniture in the house, you will choose expensive items without checking the functionality, just looking at the widely advertised brand name and countless accessories with the thought "Expensive things are always better". At the time of purchase, you think you will use up those accessories so you are willing to take out a loan or use a credit card to buy them.

But after a while you realize you've spent too much money on accessories you never use. That's how the "decoy effect" works.

There are many ways to shop cheap, non-branded goods and save money, so give them a try and you'll be surprised at how much you can save.

"I paid with my credit card anyway, it wasn't a large amount"

A small purchase made with a credit card may seem insignificant to many people. For example, spending $15 on an item may seem pointless when their credit limit is $1,500.

The power of a credit card is to separate the pleasure of making a purchase from the regret of parting with the money you have. You can try to control your spending by only withdrawing a certain amount of money each week and using cash when you pay for something.

"I saved well last month so I can spend more now"

It's great if you saved a significant amount of money last month. But that's no reason to spend lavishly this month. If you don't control your spending, you can easily fall into financial difficulty.

Budgeting should be a regular, ongoing practice that should be done regardless of the size of your cash flow.