Spending too Much

You’re in your white house lying down on your water bed, you stomach rumbles you ring the bell beside you and the next thing you know a butler in a suit is delivering you favorite food to your bed. Ever imagined living like this? Well, in this essay the problem it will be talking about is spending too much, and I will also talk about the solution for that. Causes of spending too much is when one wants to fit in with other people and wants to buy all the new things. The effects of this may sometimes depress one for example, one is in a hurry to buy something one really wanted then after receiving it one finds out that it is not the exact thing that he/ she wanted. One of the best ways to solve this problem is to have determination, obedience and I will be also be talking about the 7 day challenge to stop spending a lot.

So you want to stop spending much and start saving more? There are many solutions to this problem but with all of those solutions there are also a lot of temptations to spend the money that you have. Things that will temp you to spend a lot are things like sale, credit cards, and cash in your wallet, most of the things you see. According to banknote.com (2010) by Laura Bruce (2007) it states that you have to find your own weakness in spending money. When you found your weakness that is when the limitations l will start. You have to start with having determination, obedience and a notebook.

This money diet consists of three main steps that will help one reach their goal in saving money. Step one, on the notebook you have to write on the notebook you everyday spending or let’s call them your needs. Examples of needs are food, transportation (if you have no car), load on your phone, allowance etc. when one knows all your spending calculate them and that will be the money one should spend on your calculations. One’s calculations could be daily, weekly, or monthly.
Once one has done step one then you move to step two which is like making allowance for yourself and one is not allowed to spend more than that amount of money. When you do this step be honest and don’t underestimate or overestimate yourself. The allowance that you should give yourself should be reasonable.

After the first two steps one will be ready to test whether or not one can do it. Step three’s objective is to have side money at the end of the day, week or month. If one had to go to the ATM it’s ok, just work on how not to do it next time.
One of my friends has a way of saving money. Students receive allowance daily, weekly or monthly, when one receives their allowance immediately put aside money. The side money should be at least 50% or more of one’s allowance, one is not allowed to spend their side money. So I suggest that you put it in your piggy bank or someplace where it’s hard to get. I put this method in the essay because I have tried it and I am one of the people who benefited from it.

The solution mentioned in this essay has benefited a lot of people. After the 7 day challenge most of the people who tried it were successful according to banknote.com (2010). In the second solution which is according to a close friend of mine, most of the friends who followed this method received 500-1000 baht in a half week, so it is a good way to save money. I suggest that one follows either one of these methods and you will benefit from it, and if the teenagers learn these methods early it would be good for them so they will easily gain money and think before buying so that money would not be wasted.

Bruce, Laura. (2007, May 7). Spending too much? try the 7-day challenge. Retrieved from http://www.bankrate.com/finance/personal-finance/spending-too-much-try-the-7-day-challenge-1.aspx

Lawrence, Kutner. (2009, march 4). Teenagers and money. Retrieved from http://www.drkutner.com/parenting/articles/money.html