UNDERSTANDING HOW TO MANAGE MONEY - Part 7

Hello guys, I trust you are doing great. In my last post I talked about some vital strategy where you can manage your money, in this part we will be talking about some advance strategy in helping you to manage your money through overspending

MONEY CAN BE MANAGED BY REDUCING OVERSPENDING

WHAT IS OVER SPEND?

Over spend is define as a condition whereby money or materials are spent beyond the traditional limit. Money are alleged to be spent supported the allow the completion of every project but when the budget is exceeded, such person is claimed to possess over spend.

Over spending has its advantage and its disadvantage also . Over spending are often benefitting within the sense that the surplus money spent are often wont to execute a project far more better sometimes than the already made budget. And if one overspend at an equivalent time, the surplus money spent may affect other project to be done by the person or may even affect his or her personal life.

Addictive behaviour as a results of psychological dependence may be a sort of most overspending. The poors spend the small they need to alleviate other issues in their lives like anxiety and stress. people that are okay financially may overspend just to oppress others, for instance , by footing the bills of individuals in restaurant or any mall just to impress people. and a few wants to impress their relatives or family by spending anyhow even once they aren't capable of doing it.

Low income may be a explanation for overspending as an individual with low income tends to spend quite his or her salary monthly which end in overspending because the expenses is now quite the income of such person. Low level of assets also causes overspending.

for instance , an individual that owns a car will have a discount in his expenses as there'll be no expenses for transportation unlike the person without a ride likewise the person who owns a house even have a plus over the person who doesn't own a house. Emergency cases also make people overspend. this is often the main causes of overspending that the majority people faces.

Emergency cases like accidents requires an individual to spend excessively even with the cash already planned for. The results of overspending is bankruptcy which is that the financial instability and lack of cash .

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HOW TO REDUCE OR MINIMIZE OVERSPENDING

A reasonable person should know the difference between needs and needs . Needs are the items that are necessary for an individual to possess at that period of your time while wants are the desires of individuals that aren't necessary at that period of your time .

When spending or preparing a budget, the requirements should be cleared or settled first before attempting to settle the requirements if there are excess money. Nowadays, due to the expensive life people live, they settle their wants before their needs even once they aren't capable enough to satisfy their wants.

for instance , a worker earning about thirty thousand naira shouldn't have the mindset of settling his wants of a five bedroom duplex without having a side income. Instead he should attempt to meet his need of acquiring a house but the one which will not harm him and stop him from having a touch money from him or her. If one are going to be sincere with him or herself, one will likely know that much of the spending is for things that he or she want but not that they actually need .

One may have already acquire a walldrobe filled with clothes, a vehicle which will move him or her around for several years to return .

Another important thanks to stop the behavior of overspending is to be very contented with what one have and therefore the position one is in life. This doesn't mean he or she should lost his or her dream or to prevent aiming of achieving great in life. in fact not. But, it implies that one should be happy and glad with the way things are, while they keep seeking for the items and to enhance within the ways in which really matter.

Thank you for stopping by to read my article.

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