The Philosophy of Spending Too Much
The biggest misconception among individuals who think they don't have enough money is that they think they need more money to cover their expenses which will supply them with that ultimate lifestyle they are aiming so hard to achieve. But one common pitfall associated with personal finance will more often than not still leave them dissatisfied even after they have reached that stage where they do get more money. This can be summed in the idea that personal expenses will immediately increases when the cash flow increases. But the real problem, or solution, lies in actual fact in the personal cash flow management of these individuals.
Looking at the economy, one soon wonders how so many people could land themselves in so much trouble in such a short time. On their behalf, however, one has to take into account that the recent events in the world of global finances was rather unforeseen, especially in preceding times like the housing bubble where prices seemed to rise and rise thus making the economy appear stronger. But the bubble burst and the correcting wave has now resulted in so many people facing any measure of bad debt and foreclosures on those homes they cannot afford to pay any more. Again one wonders if the real problem isn't in the mentality and brought on by external influences that drive a nation to buy, buy, and buy!
In recent financial news the United States has reached a level of inflation not seen for close on two decades. Gas prices have also edged past those marks where many people thought they'd never will and job cuts have risen and are set to rise in the not too distant future. This has lead to many sources of information on personal finance management to question those motives by which people exhibit a lack on cash flow management skills. One of the issues highlighted is that individuals remain unaware of the true value of that which they buy. Take for instance cars, television sets and personal computers - all of which can be purchased with by paying on a monthly basis but also all of which lose their value at a staggering rate.
The moral conclusion from the current financial debacle which faces consumers directly is that cash flow management is necessary as well as an examination of those things really needed and those things that are merely wanted. Where the first serves to contribute to life in general, the second is a ostensible luxury which in reality only serves to drain funds. As such it is important to note that the actual problem lies in those things we allow to influence our lives as opposed to our lives influencing our surroundings.
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