Why so many people struggle with their finances?
There are a lot of people out there that have difficulties with managing their financial situations. There are too many people using credit cards every day, too many people not paying their mortgage payments, and too many people that just can't figure out why they can't manage their finances successfully.
Some individuals have trouble correctly budgeting their spending. Some people do not realize exactly how much money they are spending each month on stuff they don't really need to purchase. Off course you can't spend more money than you earn each month. Budgets are extremely helpful when they list the income that is earned versus the income that is spent each month. If a person or family is spending more than what they are earning, they should know that they're going to go into debt in a short period of time. No one should really spend more than they earn unless there is an emergency situation that occurs. For example, paying for a trip to the emergency room can be considered an emergency situation.
Too many people overspend each and every month for things they don't absolutely need. Who really needs the latest and greatest technology devices every month? Buying them is a sure way to run into big piles of financial debt. Some people think they must only buy brand name clothes and brand name food. All of the brand name stuff comes with a price – and some store brand goods are just as great as the brand name items are. Why waste a whole lot of money by buying only name brand goods? It just doesn't make a lot of financial sense for most people.
Some people feel that they are entitled to only the best things that stores have to offer. They will go out and purchase something just because they think they deserve it. While it is nice to buy expensive merchandise every once in awhile, giving into buying it every week or month because you feel entitled to it is not a good option. Having a high sense of entitlement has put many people under water financially. The sense of entitlement that a lot of people have also applies to their automobile ownership situations. Many people believe that they should be driving around in the newest, coolest, sharpest automobile that there is. The problem with this is that many of those types of automobiles come with a high monthly price. Who would want to make outrageously high monthly automobile payments for many years at a time? The person who thinks that they are entitled to the automobile of their dreams would. This sense of entitlement when it comes to vehicles can certainly land a person's finances in the deep end. People in financial trouble need to stop feeling like they are absolutely entitled to everything!
There are also those people who never try to save money because they believe they shouldn't have to. The truth is that virtually everyone has to think about saving money on the items they buy at some point in time. Why don't more people shop the weekly ads to see where the best deals on certain items are to be found? Why don't more people clip coupons to use on the many products that they purchase? Virtually no one is above trying to save some money on the items that they buy. Some people just will not take the time and effort required in order to not spend as much money. These people tend to be financially ignorant and will likely end up struggling with their finances in the future.
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- Scott Gelbard Financial Executive