We spend more than what we earn. We try very hard to make sure that we'll survive a given pay check period but eventually we find out that the money we have in our pockets are not enough to meet the next pay cycle.

We have to know the reasons why we spend so much more that what we make. The will be the main focus of our topic here. If you think you're guilty of one of them, then it's time to make a reality check and make adjustments in our lifestyle.

No Monthly Goals

The first reason why we overspend is because we don't set monthly goals to save money. As a habit, those who succeed in building up a savings for themselves are those that set aside at least 10% of what they get from their pay checks. Setting aside a hundred dollars a month will lead to a savings of $1,200 a year, that's $5,000 in just 4 years.

Easy Credit

Second, we have easy access to credit. Borrowing money from lending institutions is a piece of cake. There's also one at every block in every neighborhood. We also have friends around us who are willing to extend a helping hand or neighbors who are willing to pass the hat when it's needed. The money we get from this is very easy to spend but difficult to pay back.

Easy Money

Third, we have easy access to cash. Sometimes, even if you try to set aside a specific amount as your savings, there’s an ATM machine around the block and withdrawing the amount we need is easy. Easy access to cash is another reason why we have the tendency to overspend.

Misused Plastics

Fourth, we have the tendency to misuse credit cards. The primary design of this plastic card is to make sure that in times of emergencies, we have something that will make us survive unexpected expenditures. Spending money that we don't have puts us in a cash trap.

Temptations, Temptations…

Fifth, we easily give-in to temptations. Once we look at store windows and see an item that looks good, we check the price it has and see if we have that amount readily available. Viewing online stores is also very accessible and highly tempting. It's very easy for us to dial their toll free numbers when we want to ask something.

A Cure for Depression

Sixth, we sometimes spend money to make us feel good. There are moments when depression happens within us. As a result we try to find ways to feel good so either indulge in buying food or liquor to drown our sorrows, or go on a shopping spree. It somehow eases the pain we have inside.

Can’t Say No

Seventh, we find it very hard to say no to ourselves. If we see an item that's 50 or 70 percent less than its retail price is very tempting. We have to know when to say no.

Ego Booster

Eighth, we spend to prove our self worth. When we date people, we want to show the other person that we are worth their love and attention. We spend a little over than what we normally do to accomplish this goal.

I Have Power

Ninth, we spend to show everyone that we have the spending power. This is another ego booster for those who hold a top position. For executives, to spend a lot is not a demand, it's an expectation.

Lifestyle Setter

Tenth, we have to maintain a specific lifestyle. The material things that we keep around us define our lifestyle. Peer pressure contributes to this. Having the latest gadgets in town make you look cool and trendy. But it doesn't mean that our pockets agree with it.

Image Builder

Finally, we spend money to keep up the image that we have. This is very true for those people who are known to already spend a lot of money. Once they decide to start saving, it surprises people. As a result, whether we like it or not, we have to maintain our spending attitude.

If we are guilty with any of them then it's still not too late to change and save for a rainy day.