Last updated on August 25th, 2016 at 08:11 am
With the rising inflammation in our society, it is normal to hear people say that they have gone “broke”. The word “broke” refers to the idea of having completely run out of money. Many people buy different things from boredom and too much money in your wallet. They buy more and more things that others drew attention to them. With the growing advancements in technology, the amount of stuff we own these days is staggering.
The television has all kinds of ads, which in general aim to keep you from thinking and, instead, make your buying choices based on an emotional response. On average, we see with the growing advancements in technology, the amount of stuff we own these days is staggering. The television has all kinds of ads, which in general aim to keep you from thinking and, instead, make your buying choices based on an emotional response.
On average, we see 5,000 advertisements every day. Every advertisement carries the same message: your life will be better if you buy what we are selling. We begin to hear this messaging so many times and from so many angles, we begin to subtly believe it. This is not a complete condemnation of the marketing industry. This is simply a call to realize their messaging affects us more than we realize.
Today’s consumers must be more vigilant than ever in the face of clever, and even deceptive, marketing tactics. If you’ve ever looked at someone rich and thought you’d be set for life if you had all that money, maybe you would or you wouldn’t. There’s no such thing as having too much money to ever go broke. Financial security is determined by financial decisions and so, here are some ways that you can save yourself from getting broke.
Today’s consumers must be more vigilant than ever in the face of clever, and even deceptive, marketing tactics. If you’ve ever looked at someone rich and thought you’d be set for life if you had all that money, maybe you would or maybe you wouldn’t.
There’s no such thing as having too much money to ever go broke. Financial security is determined by financial decisions and so, here are some ways that you can save yourself from getting broke.
With money comes the great urge to spend it, and so people start spending it on useless things just because the idea of spending the paper and owning much greater things helps us all feel secure. Our logic goes like this, if owning some material possessions brings us security (a roof, clothing, reliable transportation), owning excess will surely result in even more security. But after meeting our most basic needs, the actual security derived from physical possessions is much less stable than we believe. They all perish, spoil, or fade and can disappear faster than we realize.
Some people who inherit money spend irrationally. They go on shopping sprees, take vacations and immediately start upgrading their lifestyles. Upgrading your lifestyle includes buying a bigger home with which come great expanses. The bigger the house, the more you are required to pay for the maintenance, utilities, and taxes that may rob you off your little bit of savings.
To keep up with the pressure of the luxurious activities that come along with wealth, many get involved in gambling. For some people, gambling is recreation. For others, it starts out that way but turns into a financially crushing addiction. It’s not unusual for gambling addicts to drain savings, paid business accounts, write bad checks and spend their children’s college tuition.
On top of that, many skips work to gamble. Habits like gambling then lead a person to deviant acts like drinking which both, health wise and socially looked upon as a devastating habit that leads many in dismay. It has reportedly destroyed many happy homes and leads to divorce between couples and sometimes leaves one or both eyes broke, as they often have less income and higher expenses when living apart.
With the loneliness that comes along with the divorce, people start to spend more to ease themselves of the stress and depression. The need to impress and make others feel jealous is also another reason that persuades a person to spend more and more which leaves him broke.
There have been reports of many financially successful people go broke trying to get richer. They start businesses they don’t need and don’t have the experience to run. Washington Post columnist Michelle Singletary called it “entrepreneur syndrome.”
Coupled with this comes the company of a bad business partner that may cause your Titanic to sing along with his. according to Catherine Cooper, founder of Catherine Cooper Qualitative Research. One partner can run up credit, drain the business and so run it into the ground. When the unsuspecting partner discovers what’s going on, there’s no money and a mountain of debt. Even if you were unsuspecting or deceived, you’re responsible for what your partner does, she said.
Ultimately, devastated and depressed most of the people in today’s generation seek their escape in drugs. Some people start using cocaine for fun, but it’s highly addictive, the high doesn’t last long and many people escalate to using several grams a day. An eight ball, which is 3.5 grams, costs $150 to $250, or up to $91,250 a year, according to the Pat Moore Foundation, a drug treatment center. That’s clearly a route to going broke, considering the average household income is only $53,657, according to the U.S. Census Bureau. The high cost of these drugs will ultimately leave one homeless and the addiction will then lead them into criminal activities which may lead up their way to the jail. Going to jail definitely, leaves people broke.
Home loans, cars loans, child support and other debts don’t pay themselves, but you still owe. And that outstanding and mounting debt can cause a person to lose everything. And once you are out of jail, the chances to have a change in your financial status are meager.
With not enough money to pay your taxes you can be in trouble: People owe back taxes for many reasons, ranging from honest mistakes and lost paperwork to willful ignorance and tax evasion, said Eckstein.
In most cases, the IRS just wants the money and will work with you. But if you’re blatantly deceptive, don’t stick to payment plans or ignore collection attempts, the IRS can take action that leaves you broke, such as seizing your accounts and garnishing your wages. An attempt to turn the tables around by getting into a relationship with a rich partner is no less than a gamble. Cheating can leave your bank accounts empty.
Depending on how long the affair lasts, the person who is cheating might spend hundreds or thousands on dates, gifts, hotel rooms and flights. Some people even pay their lover’s bills. The average affair lasts six months and costs $444 a month, or $2,664 in total, according to a survey by a U.K. retail company, CNBC reported.
Meanwhile, factor in a suspicious spouse or partner who starts forking over cash to investigate what’s going on a private investigator told CBNC that he charged $100 per hour plus expenses and the costs start to add up. While all this extra spending is occurring, there are still household obligations to cover.
Infidelity is a prime example of how emotion-driven decisions make people go broke. Also, adding an authorized user to your credit cards is risky and could lead you to the poor house. Unlike a joint account holder who is also responsible for repaying debt, an authorized user has the right to spend to the end but isn’t responsible for paying 1 cent. You’re the on the hook for all bills. So the person you are planning to get into a relationship may not be as dumb as you were while on your journey to being broke.
So maybe the next time you go out with your credit card or some cash for shopping you might as well want to remember all the weird ways that can lead you to bring broke and you might want to consider this, Excess material possessions do not enrich our lives.
In fact, buying things we don’t need keeps us from experiencing some wonderful, life-giving benefits. We would be wise to realize the cause and become vigilant in overcoming it. There is more joy to be found in owning less than can ever be discovered in pursuing more.
Frugal living doesn’t have to be a life devoid of fun. In fact, you might be surprised how easy it is to trim your expenses with a little patience and planning. The more you can get out of every dollar you spend, the more money you will have to save for potential emergencies, a college education for your children, vacations to exotic locations, or whatever big ticket item your heart desires.
We are all human and we all sometimes get carried away with our purchases. The key to spending wisely is to cut out as much temptation as you can and test what is important to you. Be prepared, because the process of discovering yourself will take some willpower and you may well end up with some dusty old exercise equipment in the garage. But over time, you’ll learn to stay on track. The next time you want to overspend, you might as well want to reconsider this picture and the reality of life. After all, money does not grow on trees, does it?