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| Articles: Spending Money |
People spend their money too fast
Credit cards started to be more and more popular. The reason why this happened is because a credit card allows you to buy items even if you don't have any money. A credit card is going to charge he money needed to their bank account, and this way if you use a credit card you will be allowed to pay that money later.
So a credit card will allow you to spend a lot more than you can afford, this way the consumers will always have the impression that they are able to spend more than they earn. Credit cards are one of the fastest way to get a loan. This is happening because...
My friend Monica
Far too often people use consumer credit for current needs and wants. People don’t invest or save money, they use it to have fun.
My friend Monica is a good example. Recently, she lately bought a car for $2,000, which she paid for using a car loan. The car was not purchased for her to make a living, but instead was bought for her to get from point A to point B more comfortably. Then, she spent $400 on repairs, and “essential items” including, a CB-radio, CD player, and some other stuff. Monica is the type of person that will go into a store and buy a very expensive DVD player...
Good = Expensive
Does expensive mean good?
Are the most expensive things always better?
Not necessarily. Recently, I happened to stumble upon a television show called something like “You Look Beautiful When you are Naked”. The show was basically about rejuvenating cosmetics. On the program, there were four different brands of products introduced. The cheapest of the products cost approximately 15-20 pounds, and the most expensive cost 80 pounds. When tested, the most expensive product was the least popular. As you can see, buying the most expensive product does not necessarily guarantee you quality, nor does it mean that it is the best.
Some people can be fooled by pricing, and assume that buying the most expensive product means that it should work. In fact, this is a marketing tool used by companies...
The more you earn... The more you spend!
The general rule is that as people earn more money, they tend to spend more money; however, there are some exceptions to this rule. We all know people who may have a lot of money, but are reluctant to part with it. On the other hand, we all know spendthrifts, people who squander every penny that they make. These people often spend an enormous amount of money on miscellaneous consumption. Miscellaneous consumption includes items like entertainment, shopping, gadgets, and basically things that you can live without. If you are in this situation, it may be difficult to reverse.
People with spendthrift tendencies should really consider ways to change their lives. Often people in these situations start trying to earn extra money, the idea being that if you had more money that you might end up have some left at the end of the month. People assume that more money makes you feel better and financially safer. Some people work overtime or take side jobs in order to supplement their incomes. The problem with this is that...
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