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Top 10 reasons people spend more than they earn

I just found this article on the Accumulating Money forum at the following address:
http://www.accumulatingmoney.com/top-10-reasons-people-spend-more-than-t...

and it discusses the top 10 reasons why people spend more than they earn. Please check it out, it may teach you a thing or two :)

In my opinion the biggest reasons why people spend more than they earn is the excessive use of the credit cards, the general lack of financial education(which is the biggest reason) and the ignorance to check your situation every now and then to see how good or bad you are.

According to one study, in US approx. 45% of the population spent more than they earned in 2007. That is a big number and certainly some companies make much money from this situation especially with the current recession and the possibility that many people will go bankrupt because they spend every paycheck and don't think about saving money.

Do you have other reasons why people spend more than they earn? If you I want to hear from you, tell me your opinions :)


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#1Submitted by Anonymous on Mon, 09/15/2008 - 06:52.

Because we are never satisfied

I think one reason why we spend more than we earn is because we are never satisfied. We see someone else with a bigger car and we want one. We see someone with nice clothes and we want it too. Compound all this together and we start to think that we deserve all these good stuff. So we just keep spending and spending. Of course, another reason is due to poor budgeting where we don't even know how much we are spending

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#2Submitted by Ciprian on Sun, 09/21/2008 - 11:19.

Thanks for the reply! Indeed

Thanks for the reply!

Indeed that may be a very good reason, you hit a sweet spot. The greed seems to be part of the human nature.