It is interesting to know why do we run out of money, if not on most occasions then at least some times. If we do have a job and the money that we earn compensates our cost of living then it is only logical that we won't be short of money. Where do money problems come from?
An interesting online resource where it is explained in a perspective that money problems come from what is programmed to us and lack of planning. I like the use of the word programmed because not only it connotes being accustomed or formed as a habit but also the resolution that I'm proposing is reprogramming.
It reads, "The problem is that we are "programmed" to spend and not to plan for our financial future. Except for the inflation/recession, which is government-originated, this can be seen in detail below.
The Seven Money-Eaters:
Inflation/Recession Crunch – inflation is an increase in the ratio of currency and credit to the goods available. In short, the government has "manufactured" excess cash in the system. Moderate inflation "fuel" the economy and helps to maintain full employment. Uncontrolled inflation causes the economy to "heat up" and causes prices to rise. Consumers will therefore save or reduce purchases. This causes recession in the business sector. Inflation is the "silent eater" of our money’s value.
Emergency Crunch – we must spend because a situation, often dangerous, arises suddenly and calls for prompt action.
"The Thing" Crunch – we must get it because it is the "in" thing.
"Get it Now" Crunch – we must get it now, not later.
"Keeping Up" Crunch – we must get it because our neighbor has it.
Save Crunch – a variance of "get it now" crunch. We must get it now because it will give us a discount now than later (during sale).
Easy Credit Crunch – we can get it now, even if we don’t have the ready cash, because we could pay it later. "
You may visit the web link: http://www.aredconsult.com/finance-course-online/money-eaters.htm
It is worth note taking to understand where our money problems come from and as a result of understanding the problem is knowing the appropriate solution that we can offer. A practical mindset focuses on resolving problems and not letting the problem continues. The resolution that I am offering in the six out of seven money problems is to reprogram our mindset to the extent of changing our way of life to stop unnecessary spending. The resolution comes from within, an examination of our practices, habits, beliefs, discipline, and the likes and avoiding the impractical.
The ultimate aim of getting rid of money problems is not necessarily having a lot of money but rather avoiding losing money, that is, by saving money. It is not how big we earn everyday but how much we save because from saving our money we can think of future investments which is in the long run will give us more benefits.
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