Today as I was reading through some of the financial articles that I like to browse, I came across one that I think summarizes most peoples financial issues. I should clarify that a bit. The article doesn't really summarize that, the article explains a phrase that I feel summarizes most people's financial woes. Here is the article.
"They don't have an income problem, they have a spending problem."
I assume I got this from one of the financial writers that I enjoy reading, but I recall a conversation I was having a few years ago and that was my comment on the topic. If you consider your own finances or just about anyone else, most would have out of control spending in some form or fashion.
Most people simply live their life and spend what they make. Saving is not the priority it should be. Spending is what its all about. We have a problem with instant gratification and cannot put off having things for a later time.
The interesting part of the article is that its focus is on high income individuals who still live paycheck to paycheck. The assumption should be that the more you make, the more stability you should have, but that does not seem to be the case. Many people in that category probably assume that their high income will have them set for life. That is the thing about emergencies. No one ever sees them coming.
These issues can all be addressed simply by following the simple budgeting process I laid out in my previous post. Check it out Here!
It all comes down for having a plan for your money and being disciplined in sticking to your budget. Once you get some momentum, it can be very exciting to see your balances grow and your debt disappear.
Good Luck.
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