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 generally they end up spending all of the extra money that they have earned, which will not solve the problem. If a shopping maniac earns $1,000 all of sudden, what happens to it? Generally they will spend, whether they spend on clothing, electronics, or home furnishings, it will generally be gone before they know it. These people will spend because they like having new things. In many cases psychological and behavioural changes are necessary, more money will not always fix the problem. These types of spending behaviours are dangerous, as sometimes it becomes a vicious cycle.
The next danger with this type of behaviour occurs when you do not have enough money to pay for the things that you want. No matter how hard or long you work, you just cannot seem to afford the newest electronics, gadgets, vehicles or what have you. This also becomes dangerous because the more work that you do, the more it takes over your life. Human beings are not made to work these extended hours for long periods of time. Working crazy hours in order to pay for the things you want leaves you unsatisfied and even if you are able to afford the things you want, you don’t have any time to enjoy it.
If you cannot work extra hours or still just don’t have enough money you may start borrowing, which is a whole new risky type of behaviour. Nowadays, getting a loan can almost be too easy. If you have a valid ID, you can go into some banks and in 15minutes get a loan. This can be extremely tempting, but be ware! You should take getting a loan seriously. Do you really want to spend all you money on shopping, or do you want to really be creative, earn money, and finally get out of the spending pattern? Creative people earn recognition, don’t you want to be one of them?
If this sounds like something that you would be interested in, you could look to invest in something small, that is considered a true asset and one that can bring you benefits, instead of spending everything on insignificant items. Look to create long-term money through passive income. One of the simplest ways to create passive income is to establish or buy a website. Websites have tremendous income opportunities, the costs are manageable, and there is an overwhelming amount of free information available on the subject. This is an option that is definitely worth considering, as it can increase your income, and offers you the opportunity to learn about business and money.