If you spend more than you earn, what is the cause

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Hello Friend, In this blog I will always share writing in the form of knowledge gained from various stories of successful people that I read, and I will make this writing. Hopefully what I write can be useful for all of you.Many of us have already managed to have a very large income. 

But in reality there are some people who already have a large income, but their savings in the bank are still empty. "Although your salary continues to rise, why empty savings?" What problems occur? and why can't you save?

The most common occurrence of this problem is because, as your income goes up, your lifestyle also goes up. Why did that happen? It could be that you used to have nothing, and suddenly with a lot of income you get, you can buy everything you want. And you show off to friends of friends that you can also be successful like them.

Indeed, there is nothing wrong. But if that happens continuously, it will follow a lifestyle. Even if your income goes up, you will still have a lot of debt. 

5 reasons your income is going up but your savings are empty

Here are some reasons your income goes up instead of your savings remaining empty:

1. Have a lot of debt

You have an income of $1000, but with you always following a high lifestyle, $1000 can be minus $1500 because you buy things or pay for your lifestyle at that price, and then you still have debt. Many of them have an income of $500 and can save; why, when you have an income of $2000, can you not save? What happened?

2. Poor financial management

If you don't record all your expenses, then you won't know where the money has gone and what it has been used for. Hence the importance of having the principle of managing personal finances well. Record and organize your finances as small as possible, then you will know what the money has been used for. In the age of technology like today, it is not so difficult to record all expenses, because there are many financial applications based on iOS and Android that you can use to manage finances. Take advantage of it.

3. Unable to control themselves

This is the most important point. No matter how much money you have, it will run out in an instant if you can't control yourself. Because you always want to shop. Moreover, many of the promos provided by online stores make your hands itch to immediately check out to buy the goods you want. Moreover, you have made shopping a hobby, so whatever you want to buy. until the item is wasted because it has accumulated unused. Although in resale, still the goods are not sold.

4. Have an expensive hobby

You always see the wealth of others, and you want to follow suit. Even though your income is not comparable to theirs. You always see them on social media wearing expensive watches and cars, and you follow them. You have to pay more here. Then it is what makes your income a minus even though the income is high.

5. Have a lot of dependents

If you already have a family, then this will also be a burden for you. Family here does not mean only children and wives, but also relatives who have hope that you can manage their lives. More of them lost their jobs. And the impression is that you are afraid if you are considered indifferent to them, and you also win the burden of all their lives. Because they have no control over their own lives. Finally, make your life independent.

Of all the things that happen, there are facts that happen in our daily lives. So the main key is about the way we think about finance. No matter how much our income and salary, it will not guarantee our savings too much. At the end of the day, you have more debt than you earn. It is mandatory for you to balance income with lifestyle so that your finances remain stable.