It is a fact in the 21st century that the majority of people are living beyond their means. There is “too much month left at the end of the money”. The recourse – naturally – is to the ubiquitous credit card, until the card is maxed out. At this point, maybe some bills don’t get paid, or are delayed until next pay day.
Largely, this is a result of failing to have a budget – and then sticking to it. If you are living on a fixed wage, it is not too difficult to draw up a budget, but many people simply do not bother. It is even worse, in some respects, if part or all of your salary is commission based, since if you have a bad month there is always the thought that the next month will be better. Many folk just stick their heads in the sand and keep their fingers crossed.
So what happens to all the money that we do have? Here are the 5 things we spend most of our money on today.
1. Mortgage Or Rent
Maslow’s Hierarchy tells us that one of the basic human needs is for food and shelter. We have to have somewhere to live. For many people, the feeling is that that “somewhere” should be bigger and better than other people have – we need to keep up with the Joneses as a minimum, and for preference have a “better” home than they do. For the most part, the largest amount of money we spend goes on our mortgage and keeping the roof over our heads.
Even if you do not own your own property, you will still be spending a large chunk of your monthly income on rent. When they get a salary increase, many people will simply look for a bigger or better home, whether they are buying or renting, thus spending even more.