Why Making More Money Won’t Solve Your Money Problems
Have you ever thought if you were to have more money you wouldn’t be struggling financially? While this may be true for many, it’s not true for all.
More money doesn’t necessarily mean financial freedom. What’s holding you back from being financially free is the common spending behaviors you have with your money. What good will more money do if you will still spend it unwisely and don’t know how to responsibly manage it? Here are some common behaviors causing you money problems.
You Lack Financial Goals and Plans
Like most obstacles in life, without a proper goal and plan, it’s going to be very difficult to overcome. This is especially important when it comes to your finances. Money problems start when you have unclear or undefined goals, or no goals at all. So, how will more money solve your financial problems if you don’t have a plan on how you will make use of it? While your goals may change, it’s always important to write them down and visit them regularly to track your progress.
You Don’t Manage Money Properly
When you don’t take care of your money, it’s not going to take care of you. To help you properly manage your money, you may want to consider creating a budget. A budget will help track your expenses and help you prioritize where your money should go each month. This will keep you in check and help you to better live within your means – a key component to solving your money problems. If you’re fortunate to come into money, and you weren’t living within your means before, chances are you still won’t when you have more to spend.
You Can’t Distinguish Between a Want and Need
When you lack the skills to manage your money properly, you may be finding it difficult to distinguish between a want and a need. The financial wants and needs in our lives are what make up our spending. A need should be defined as an essential expense for you to be able to live. This can be housing, food, electricity, etc. A want is any purchase for fun or leisure what will help make your life more enjoyable, such as a vacation.
It can sometimes be difficult to distinguishing between a want and a need. For example, you need clothes, you need a car, but do they need to be the latest style or a particular brand name? There should be room for wants in your budget, but you may want to consider writing both wants and needs down so you can budget for them. This can keep you from overspending and help you stop your money problems!
You’re Always Trying to Keep Up with The Joneses
We’ve all heard this line before but for those who haven’t, “keeping up with the Joneses” is a phrase used to describe one who focuses on their appearance and how they compare themselves to others. Your motive for lavish purchases and keeping up with what others have is an easy way to wind up in mountains of debt. You may look rich on the outside but your bank account (and maybe even creditors) will say otherwise. Once you rid yourself of this money problem, you’ll save more money and your bank account will thank you!
Of course, everyone wants more money, but being financially free takes more than a larger paycheck. If your spending habits are poor, making more money might just leave you making even larger purchases you can’t afford. How are your spending habits? If you were given more money how would you make the best of it? Feel free to leave your comments below!
If you need help taking control of your money so you can end the paycheck-to-paycheck lifestyle, Tayne Law Group’s team of talented attorneys and support staff can help! Give us a call at 631-470-8204 or visit our website to schedule a free, no obligation consultation. You can also check out our Facebook and Twitter accounts to get more valuable personal finance content.