Why You Keep Spending Your Money And What You Can Do About It
When it comes time to pay your bills, how do you feel?
Does your heart drop down to your stomach?
Maybe you feel lost. And you might’ve even thought to yourself…
Why do I keep spending more money than I make?
If you’ve had these thoughts, then you’re not alone.
Actually, you’re probably one of the millions of Americans who wonder the same thing.
Don’t believe me? Well then let me share a shocking statistic.
65% of Americans admit to having no idea how much they spent last month.
Even more shocking, the average American lives in $90,460 of debt.
So what exactly went wrong in America? Let’s take a quick look.
Credit Card Crisis
A lack of personal financial education in our public education system has definitely contributed to our financial crisis. Now, try adding this with uncontrolled spending habits and credit cards, you’ve got yourself a perfect recipe for disaster.
Your credit card has given you the illusion that spending money you don’t have is normal.
Just imagine that you never had your credit cards. How would you spend money you don’t have? And why would this be normal? The only way you couldn’t spend money you don’t have would be either to borrow or steal.
Now, don’t get me wrong, credit cards are wonderful. They’re great tools for building credit and accumulating travel points. But this is only true if you consistently pay off your credit card bills on time.
There’s always a consequence to everything you purchase. And it gets much more serious each time you miss a payment. The truth is that credit card companies wouldn’t be in business if everyone paid their bills on time. They profit off of millions of Americans that lost control of their spending and are now stuck with interests and penalties.
A Deal You Should Refuse
Credit cards offer you a lifestyle you can’t afford. And in the short-term, this might seem like a good deal. Because why wait when you can have everything now?
Well, let me explain what actually happens when you do this.
In exchange for your temporary purchases, you create a future where most of your income goes towards paying off your debt. It’s a classic bait and switch. You exchange your opportunities to build wealth for the things you want now. What makes this even worse is that you’ll be building the credit card company’s wealth instead of your own.
If you think that’s bad, wait until you hear the psychological damage you’ll suffer from being in debt. Living in debt brings a lot of shame and guilt into your life. Did you know that 29% of people living with high debt reported having extreme anxiety?
Flexing Keeps You Broke
Social Media has given birth to “Flex” culture. It’s basically “Keeping Up With the Joneses” on steroids. I’m sure many of you dream of pulling up next to your haters in a Lamborghini.
And I do admit, I’ve had such thoughts myself whenever someone would doubt me. As nice as that sounds, spending money just to impress people you don’t even like is never worth it.
Sure, it’ll feel really good to stick it to your enemies. But the years of suffering that’s ahead of you is never worth the few seconds of your “flex time.”
Whether you like it or not, eventually, you’ll have to live within your means.
If you choose to go into debt to purchase a lifestyle you can’t afford, you’ll eventually be forced to live a frugal life. In some cases, you’ll be forced to sell your fancy car at less than half of what you paid for… just to pay off your debt.
Resources To Help You Build Wealth
It’s true that our public education has failed us when it comes to personal finance. But I have some great news for you. There are tons of books, guides, and even coaching available online to help you take control of your finances.
Not sure where to start? Well then, let me help you out.
If you’re drowning in debt, I recommend starting with Dave Ramsey’s book, The Total Money Makeover. In his book, Dave walks you through how to pay down all your debt. And on top of all that, he teaches you how to save and build your wealth.
Not much of a reader? Then I suggest checking out his show on his YouTube Channel or listening to Podcasts. The best part about his show is that he offers financial advice for free. He has callers from all walks of life getting vulnerable about their financial situation. Then he offers them advice and resources to help them get back on their feet.
If you’re looking for more free personal finance content, then I suggest checking out NerdWallet. They have complete guides on topics ranging from credit cards, taxes, mortgages, investing, and so much more.
Just like a Doctor can’t live a healthy life for you, you can’t rely on someone else to build your wealth for you.
It’s true that we have financial advisors and coaches that can give you great advice on what to do with your money.
But at the end of the day, it’s you who decides what you do with your money.
All the best advice in the world won’t help you unless you apply it into your life by taking action. In the wise words of Jesus Christ, “the Truth will set you free.” This principle also applies to your finances.
As you grow in your knowledge and understanding about building wealth, you’ll eventually set yourself free from the habits that keep you in debt.
It’s never a fun experience to live in debt. Let alone lose the lifestyle you once had. I’m sure you’d rather choose to live humbly than to be forced into it after losing everything. When you live frugally by your own decision, you can live with dignity and freedom.
This freedom is not the same type of freedom that the world depicts through social media.
You have genuine freedom through discipline and self-control.
True freedom sets you free from the opinions of other people.
You get to be who you are without shame or guilt.
You can be real with yourself and with others.
No more hiding behind your credit card debt. Take control of your life and your money now.