“It’s Your Spending Habits.”

We keep thinking “if I only earned more money I could save more”, but we could keep chasing this thought forever. It doesn’t matter how much money we earn if we don’t do anything about our spending habits and actively focus on our personal finances.

There are two components of saving money, earn more money and spend less money. We often focus only on earning more money but the other part of how you spend your money is equally, if not more, important. The problem is that you need to work on both sides in order to get any results. Many people aim to increase their salary and doesn’t notice how they adapt to a higher expenses lifestyle in the process. We start to think “it’s okay to buy that because I get enough money anyway” and suddenly your money is gone by the end of the month even though you earn more. Earning more money is more likely to lead to increased expenses rather than increased savings and if you don’t do anything about your spending habits it doesn’t matter how much you earn.

Habits, that’s all it is. Spending money is a big part of our life and walking past several stores and advertisements every day it is also a big temptation in life. We easily fall into the habit of spending money because it brings us comfort and excitement, but is it really worth it? After all, easy comfort and excitement is nice, but the most enjoyable things in life comes from hard work.

Most of us have experienced living on a limited budget when we were young while living the student life. The income usually doubles at least when getting our first job and still we manage to spend everything in one month. Why do we spend all this money? Do we really have to? We did manage perfectly fine while being a student. Sure, we maybe had to cut back on a few things that would make our life more enjoyable, but did we really cut back that much? Or are we just over spending because we have the money and we can?

Transitioning from student to worker is a golden opportunity to really kick start your savings. It is your chance to avoid creating the spending habit. The big question to ask oneself when earning more is “If I could live perfectly fine without it before, do I really need it now?” Some things you are going to want now, but many things are just a waste of money.

Take a look at your bank statement for the last month, how much of the money you spent do you remember? How much of the money spent do you still enjoy today? Is there any changes you could’ve done in your spending that could have made you a bit richer today?

We already spend a lot of money that just supports various corporations profit, let’s invest the money in our own profit instead.

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