Poor spending habits can lead one to financial disaster. After the economy crisis, many people are beginning to realized the importance of managing their money. Many of us have taken our employment for granted, believing that it will always be there thus we will be guaranteed of our paychecks regularly. This have led many people to adopt careless spending habits. Below are the three biggest bad spending habits that has gotten many people into debts.

Buying More Than You Can Afford

Nowadays, we can almost buy everything and pay on installment plans. These plans has its own benefits but when greed blinds a person, it can bring more harm than good.It may seem little but when one gets hooked to the lure of small monthly payments, it can influence the person to buy more because the small amount of money have deceived the person to think that he can afford more. In reality, the person has just put his foot into a debt.

Financial security is unpredictable and it is hard to tell if our income will remain the same and grow in future. The economy crisis has become a wake-up call for many especially for those who has been laid-off within a short notice. Suddenly, many people become worried about how they are going to pay off all these future debts that their past self has created for themselves.

Dependency on Luxury

I am not saying we are not deserving of luxury and enjoyment in life. We do have all the rights for it. However, when we become attached to it, it becomes a crutch for us. What I mean by luxury is when we use things that have quality a level higher than the standard ones. It is natural for us to buy better things, which are always more expensive due to its quality when we earn more. However, the mistake many of us make is, forgetting to question if it is necessary.

It baffles me when someone I know, told me that she has to use 3-ply tissue papers to clean the dusts at home than using a microfiber cloth. She refused to believe even when I rationalized with her that the cloth can still do the job and can save her some money. Nobody can convince her because she has bought into the story that she will not be able to clean the dusts off using anything else besides 3-ply tissues. What my friend has contracted is the disease of attachment. When we learn detachment, it can free us from our dependency on material things. We are able to adapt easily to different situations and not feel helpless when things get taken away from us.

Letting Your Ego Influence Your Spending

It is common to be told to spend more when we receive more money. If we follow suit with these advices just because it is what everyone else is doing but holds little meaning or value, then we are really wasting our money on things we don't need.

Before we jump into bringing our expenditure a notch higher when we receive an increase of income is to ask if what we are about to spend on what we want or what our ego wants. Are we buying that bigger house that has more rooms than inhabitants just because we have been promoted to a senior management title to show our status? Are we buying the bigger car just because our nosy neighbor is telling us that a person with such income should drive a certain car? To question ourselves and demanding for a truthful answer is hard, but it is possible with practice.

Debts are resulted from the accumulation of our bad spending. We can reduce and prevent debts when we break our bad financial habits. Anyone can give us all the advice in the world but nothing will change until we realize our mistakes and start managing our money properly.