Why Do Some People Find Money Perishable?

Why Do Some People Find Money Perishable?

Almost everything in life costs money, which means spending is just a part of daily living. You wake up and make yourself coffee that you bought at the shop earlier this week. You head to work in the car you bought or use the public transportation pass you paid for.

You spend some time reading emails on the smartphone you’re paying for each month. Your whole day is full of things that cost money. But is money perishable?

Is Money Perishable?

Spending is normal, but spending more than you make is when it becomes a problem (and it’s a pretty common problem, at that). More often than not, it leads to accruing at least some debt and saving too little for a rainy day.

Money could be considered a “perishable good” in the sense that if you have money, the amount of it would decay over time.

Here are some of the reasons why some people find money perishable, and a few ways you may be able to get your spending in check:

Spending Money

Whether they’re going out every night or buying a lot of things, some people find money perishable because everything in your life requires money to be used. Buying things is inevitable but there is a fine line between “wasting money” and “utilising money”. That’s one to think about with your daily expenses.

Credit Makes it Easy

Building credit is important for so many reasons, and credit cards are a vital part of that. And it’s not that credit cards are bad– they often offer a variety of benefits and provide a nice financial cushion in an emergency. However, credit cards allow people to spend more money than they have.

Plus, several studies have shown that people think less about swiping a card than they do about spending cash, which means it’s a bit easier to swipe first and think about it later.

Keeping Track of Payments

Some people spend more money than they have, not because of a need to purchase a lot of things for happiness or lifestyle, but because they simply prefer not to keep track of what’s going on in their bank accounts.

If you aren’t sure exactly how much money you have, it can be easier to buy things here and there and spend more than you should be. This is when creating a budget becomes such an important step– it’ll help you take control of your financial situation.

Creating Your Budget

Creating your budget can be a way of controlling how perishable your own money is.  First of all, calculate the simple math to find out how much your income is, then work out your outgoings. These will be things like rent, utilities, broadband and anything else you pay for every month.

Deduct those from your income and figure out how much you have left. Then allocate the remainder to things like food and other necessities, entertainment, and shopping.

Thoughts?

Money can be seen as a perishable good as it can go badly quickly depending on your spending style. But knowing the right ways into controlling these spending methods can define how perishable your money is.