Where Does My Money Go?

Analyzing Where Did We Lost Track of Our Money

"Spending less than you earn," an old proverb which remind us to make our live a better one. Spending more than you could make will ends in load of debts. Life needs a careful judgment and that should apply to money management too. With every penny you’ve made you consider carefully on how will you spend, save, or invest your money.

Remember in my previous article about the question that will always pop up when you don’t make a good planning for your money. But we cannot fully blame ourself because in the information eras, ways to spend our money is easier than ever. Just take a look at ATM, credit cards, or E-commerce and paypal which made our money much easier to spend. The worst thing is, when your money is gone and debt start to take over, it is then you realized that you have spend more than you could afford. The following factors can make a person overspend, just to be a reflection before the you do stupid things that may cause your financial condition to get worse.

First is the credit card. How many do you have? Having credit card(s) make you want to buy things that you thought you’re going to afford. Of course, if you paid the bill plus interest with no delay, it won’t be that much of a problem. But still, regardless of your ability to pay debt, sooner or later credit card will push you to live outside of your limit.

Second is the habit of buying goods on credit. Dream of having one particularly awesome car sometime forced us to buy it on credit. Okay the interest looks low and they offer good insurance term but behind those, our future income is blocked to pay the debts.

Third, being a pushover sometimes made us forget to save money. For example, do you have the ability to say, "Let’s find a cheaper place to eat." When your friend planned to go to a fancy restaurant for lunch?

Fourth is the habit of making shopping as needs. Some would consider shopping as a stress cure after a full day of hard work. This will make you buy something that you don’t need. Even worse, some women and men are actually addicted to shop.

Fifth is ignoring your financial goals when shopping. Have you delay your vanity purchases when you remember about your retirement? Some of us would think that they will be much time later to save money, don’t ever do that, it will become regret later.

Sixth, for those who already have a family of their own, maybe they won’t hesitate to spend money for their children. Be aware though, love does not equal to money. Although we do feel really happy when our children said, "Thank you, papa," or,"Thank you, mama", their future is written in how much we can provide for their needs, like education.

Seventh, remember that money, while fulfilling your needs, cannot buy happiness. Try to remember,when is the time you are feeling most happy, I dare to say that no one will answer it is the time that they buy their new car, especially on credit.

It is not what you make, it is what you keep. Less savings mean less money in the future. A penny saved is a penny earn. Plan your financial flow and your future will be a bright one.