Are you just throwing your money away?
By: Amanda Anderson
We live in a world where money is on just about everyone’s mind. The country is in one of the worst recessions in the nation’s history, and we are learning now more than ever that we didn’t treat money the way it should be treated. When we had it, we weren’t necessarily responsible with it. In fact, those that made up the middle class, spent most of their money trying to imitate the wealthy class. We relied on credit cards to pay for items we just honestly couldn’t afford, and we create more debt than we create wealth in our entire lifetime.
While you may not think that you handle your money carelessly, you might be spending way more money than you should. Here a few of the top ways people are careless with their money.
1. Spending way too much money on designer labels.
It’s a recession, so why is anyone still trying to keep up with Jones’? I know that you might see a lot of your favorite celebrities rocking expensive designer clothing, but the truth is they didn’t pay for most of the labels that they wear. Behind the scenes, designers send celebrities garments to persuade the public to purchase their clothes. So while you paid $1500 for that designer bag Beyonce rocked the other week, Beyonce didn’t spend a dime for it. And if she did, she didn’t have to put it on a credit card. When it comes to good fashion, designer labels don’t always equal good style. And you’re not paying for good fashion; you’re paying for a name. That’s not what fashion is really about. Don’t go broke trying to prove how fashionable you are. Wear what you can afford and be proud of it.
2. Treating your credit cards like cash.
Credit cards are responsible for most of the debt that people accumulate in their lifetime. If you can’t afford something, don’t be so quick to pull out your credit card. If the purchase isn’t an emergency or something that you really need, take the proper time to save for it.
3. Creating too many bills.
Do you really need a new car or are you just creating more bills than you need to? Keep your monthly bills to a minimum and only take on new debt if you really have to. If you are only creating new debt to impress others, you need to re-evaluate your understanding of money.
When it comes to money, you will find that most people go into debt to impress other people. And usually, it’s people that we don’t like or don’t even know. It’s not smart to go into debt for people that don’t even mean that much to you. Make better decisions with your money. By doing so, you might even be able to accumulate wealth.