Cut the Reckless spending
In life,we have our needs and also wants,we have things we plan to do which will require time and also money too,so spending is an action that we will take part in our day to day activities and living..
Generally the more the cash we have the more the power of spending that we will have,that is why wealth gives people the opportunity to be able to spend money on alot of things which they desire to spend and fulfil their needs and even wants too...
So i cannot deny the basic importance of spending in our lives and in the society as a whole...
But i want to talk about reckless spending,yeah you heard me right..reckless spending is common in the society and alot of people most especially the young ones tend to engage in reckless spending...
Now what do i term as reckless spending??in my own opinion,i think that reckless spending can be referred to as the situation whereby the spender spends extremely above their budget and above their financial capacity...
for example a person earns a monthly income of $5000 and he or she has a savings of $12000,then decide to buy a car of $10000 out of the savings they have,meaning they decide to spend more than 80% of their savings on a car which cannot be considered as a major asset.... and probably the spender is hoping to keep using out of their monthly income to maintain the car and be able to save a little too...
Now to me that is reckless spending because the spender do not have the huge financial capacity to be able to afford a $10000 car without going broke....spending 80% of their savings can make them to become so broke....
Reckless spending will negatively affect the financial life of a person and it could make them go bankrupt during the process..
The reason why some people engage in reckless spending is the fact that they want to impress others and do not mind going broke doing just that,some people also have the habit of reckless spending because they lack proper financial knowledge,some people also engage in reckless spending because they are over-reliable on some source of income which might later fail them...there are different reasons why different people engage in reckless spending or turn timo reckless spender...
But the fact remains that if you want to have a great success and wonderful financial life,then you need to stop being a reckless spender and make sure you do not engage in reckless spending...
Thanks for reading...
Whoever spends recklessly finds it very difficult to save some money or even invest.
People find themselves spending more than they even earn just to measure up with certain people in the society or to impress others.
There is a popular saying; cut your coat according to your size.
You don't buy a car because your friend bought one, or because your peers all have a car. I think we should learn to spend when we actually need to, that is why there is table of preference, we acquire things that are more important/useful to us at the moment, not just because we want to buy them.
Well said, @whiteangey cutting reckless spending also includes doing things that you know you can actually do yourself instead of spending to get them done such like cutting your hair in the salon when you know you can actually learn and cut your hair by yourself, always eating in a restaurant when you know you can actually have the time to cook whatever thing you want to cook and eat enough, taking your clothes to dry cleaners when you actually know you can have the time and space to wash your clothes and iron them yourselves, all these are also part of reckless spending, things you know you can actually do by yourself but you choose to spend some money to do it just because you don't want to inconvenience yourself or you don't want this dress,
You know most people would wish to cut their hair by themselves but how can you do that perfectly, I mean it's your hair we are talking about here, how do you see it