The Finance Blogger


Spending beyond our Means

Spending beyond our meansWe are all spending beyond our means from time to time, but when our wants overtake our needs this is when we get into difficulty financially.  Then there are the issues of making enough money and the jealousy of the rich. The real issue is not the wealth of the 1 per cent, but the difficulty the 99 per cent is having in raising its own standard of living. Why are young people having so much trouble landing career-building jobs? Why are pensions disappearing? Why are more companies offering contract work instead of full-time jobs? Why is it so hard for laid off middle-aged workers to find new employment? These are all great questions, but really have no interest for someone who has been laid off or for someone who has been spending beyond their means and now has a mountain of debt to deal with.

Spending Beyond Our Means – How Did We Get Here

It can happen to just about anyone. We might have the best budget and almost always stick to it, but every once in a while something comes along that we just cannot resist. It is so easy to just charge it and worry about paying for it later. This is really what most people do and how they get themselves into trouble financially

Sometimes it is also a health problem, sometimes it is getting laid off or a host of other reasons. Bottom line is that we all need to have a cushion, an emergency fund, something to rely on when things just do not go the right way. An emergency fund is really supposed to be used to cover true emergencies and not just over spending. If you can deal with the spending issue without digging into your emergency fund or worse your retirement savings then you are better off.

Avoid the credit cards and if you do not have the money to pay for the item that will put you over the top, then delay until a later time. It will just cost you more money in interest as well as worry about how you will pay for it.

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