8 REASONS YOU HAVE TOO MUCH EXPENSES.

 

You incur expenses in pattern that leads to bad debt. It also comes in many form, it might be expenses to run a business, what it cost to design a product, manage a project and money incurred at home.
It’s just to keep the system running that’s why expenses are incurred. Expenses decreases our value or reduces our asset. What eats more into our salary is expenses but what goes deeper are the aimless ones. If not fished out will lead one to a life of paycheck to paycheck even penury.
When you budget, higher percentage goes to expenses because these are issues to be tackled and managed to help plan our finances. Expenses prevents us from saving or investing because they affect the way we manage our money. Your ability to budget your finance is the way towards seeing the impact of expenses on your money and how to curb them.
Its time to review your spending and know why the expenses are too much and why its cutting deep into your finances. Expenses are patterns that have been accumulated from your habits and you can change this mindset to become financially free.
Is it not time to start reviewing your expenses and know why you acquire too much expenses.? Is it not time to start being disciplined with your finance by budgeting and know why expenses is reducing you to penury?
Its time to fish out your unnecessary excesses and cut them down. You really need to review your expenses and know what you are not really doing right and start doing the right thing.
Why so much expenses? So much of it because of frivolous lifestyle, accumulated bills, utilities or unnecessary spending that leads to borrowing.
There are times I review my expenses and realize I spend much on transportation and other minor expenses and had to deal with it because it ate deep into my finance. You need to investigate where you are spending much and know what is killing your finance slowly.
Your expenses comes in forms of food expenses, mobile phone bills, clothing, entertainment and many more, you really need to review yourself and know why you are spending too much on frivolities and what to do about it.

WHAT IS EXPENSE?

Expense is a decrease or reduction in your asset. Its an outflow of cash from an individual for payment of items or services. Its cost incurred on something. It’s also money spend meeting needs and wants.

                                              8 REASONS YOU HAVE TOO MUCH EXPENSES
  UTILITY BILLS

Living your lights on when leave your room or not turning off  the light when you are about sleeping, not using energy saving bulbs  and forgetting to turn off your electronic and electrical appliances increases your expenses no matter how small it is eats little by little into your finance.
There are series of subscription, you pick the one with the highest fee because you want to watch all the stations and you truly know you never have time to watch them.
Also, paying for high internet subscription by service provider affects your finance  but you never take note of it. The same goes for your landline and cellphone. If you take time to do a little calculation to know how much you spend on these utility bills, you surely know you have been spending too much on bills.

LUXURY: FOOD, DRINKS, CLOTHING, TRANSPORT, MEMBERSHIP

Eating too much or spending too much on feeding or eating most of the time in restaurant and fast foods that charge high fees impact your finance. Check how much you spend on drinks? Do you review how much you spend on drinking every weekend?
You buy extremely expensive clothes from boutique or malls because you want to look good. Not a bad idea though but take time to think of its impact on your finance? Are there places to get it at a better price that will save you more money?
What of the amount you spend on transport? What of the effect of taxi’s all the time on your finance? Can this situation be salvaged before it leads you down the drain? Are there short cuts to help deal with the amount you spend on transport?
What of the membership group you are in that you pay monthly amount and some of them you rarely have the time to attend. You rarely have the time to justify the amount spent on these membership group and they slow down your finance.

CONSUMABLE HABITS

Your habits no matter how small leads to destructive act and put you in financial mess. These terrible habits make us buy too many things we need but we want them, and these things build up expenses that even lead to debt.

EMOTIONAL BUY

This another way of accumulating expenses, when you can’t control your emotion you buy unnecessarily because of your shopping addiction and other factors too. These emotional buy leads to debt and we don’t check our lives to see the harm emotional buying has caused and your expenses keep piling up.

PEER PRESSURE

Peer group have impact in your finance and in the expense, you accumulate because you want to act like them and want to be in the same caucus and its making you uncomfortable in your leisure time and putting you in sober reflection.
With this peer group, you develop the same mindset and lifestyle, and might all be struggling financially leading a paycheck to paycheck lifestyle.

  LOAN

Unnecessarily collecting and accumulating loans without checking the interest rates and penalties involved for late payment incur more expenses and leads to huge debt. You don’t check into what you collect and with time, you realize you keep struggling to pay the debt.

INNOVATION AND REPLACEMENT

You accumulate expenses because you are freak on technology or the latest product you quickly offloading the what you bought not up to three to six months ago to replace with the latest one and you don’t truly take note of this.

LOCATION

Where you dwell can affect your finance and make you incur expenses because it might be a high- standard area where things are expensive and  the rent around there is also expensive. You notice yourself struggling financially every month as if you find yourself in secret pain.

                                                     CONCLUSION

These are little things we don’t investigate but affect our finance. These are expenses that are killing you currently and you need to work towards dealing with these tiny bits that forms mountain of debt and makes us financially and mentally unstable. Since we know these minor expenses, now is the time to act and cut down these excesses and prepare to become financially free.

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