You never knew that was your last penny, which you spend, was all you had to save. You spend money instinctively without realizing what your necessity is and what’s redundant. 

The reason behind writing this blog is the experience of an eye-opening realization that I had yesterday. While doing my routine practice of economics essay writing, I started thinking about the real economic scenario of my life.

In this blog, I’ll talk about signs of how you’re spending more money than you earn. Well, you will also learn how to control your bad habits of spending too much than necessary.

 

  • You Plan Expenses Out of Your Budget

 

This is quite necessary because you have to live below your means if you want to make ends meet.

Never miscalculate your monthly income because you might be over calculating what will be left in your hand after deducting government taxes, dues, and debt. There are greater chances of monthly inference as per the reference of deposit with the owner. 

 

  • You Owe Greater Than You Own

 

When you keep exceeding and expanding your regular and monthly expenses over your income, there comes the time where you are no longer be able to go according to the budget, which you planned earlier. 

Always try to limit your desires and focus more on saving for unexpected circumstances such as a best friend’s birthday or an unforeseen accident.

 

  • You Don’t Pay For Things in Installments

 

Until now, I’m guessing you have paid a full amount for every single thing you purchase either in stores or something online home loans because you never thought of adding extra pounds in a saving jar. Hence, you are more likely to go empty-handed at the end of every month.

 

  • You’re Always Ready for Hangouts

 

Did you ever say NO to a plan that wasn’t in your budget, or you had other more significant things to spend on? 

Try refusing to plans that aren’t reasonable for you or that are less important. This way, you will be able to save much more money than usual because you’re on your pledge to cutting off jumbled expenses.

 

  • You Exceed Credit Limit

 

If you’re one of those who pay the full amount every month for a credit card, then this isn’t going to bother you at all because you’re not going into bank debt. 

Credit cards are an excellent way to pay for things when you don’t have cash in your hands but don’t forget it is also making you buy something you can’t afford like Cheap jewelry. It simply relieves you tentatively with the hope of returning it whenever possible.  

 

  • You Don’t Set Limit of Expenditure

 

You still haven’t lowered down your spending limits. For example, you hang out every weekend, partying with your friends. I was just like you until my yesterday’s economic essay writing session hit me to reality. It got me thinking that is it worth spending on places where you enjoy more like 2-3 hours?

 

  • Your Piggy Bank Is Empty

 

You probably rely on paycheck to paycheck, and there’s almost nothing for emergencies. Try keeping your piggy bank full for such unexpected situations that hit you out of nowhere. Moreover, putting your savings in a bank account is even better.