REASONS WHY PEOPLE OVER-EXTEND THEMSELVES

Below is a list of some reasons, why people over-extend themselves:

1. To make our families happy by buying them what we can't afford e.g. buying expensive gifts to our spouses when we know exactly that we can't possible afford it, this can be prevented by planning our finances together with our spouses, even to include your kids if you are a democrat, they must know when you are getting a bonus, you don't want them to ask for that PS3 after you have received a threatening call from the debt collectors, do you?
2. Impressing our peers, that also extends to adults, not just young people.
3. Temptations from credit providers, in most cases, the only way to resist temptation is to give in to it, if you have a budget it's so simple to turn down that once-in-lifetime-offer, surprisingly only available only through a call you received from a hidden number, as you already know that you can't afford it.
4. Not being able to draw a line between what's affordable to you and what's not, we can't all watch TV on a big inch LCD screen, size of the typical bread delivery truck, having money available to pay it in instalments doesn't necessarily mean you can afford it, before buying anything or commiting to any long-term contracts, we should at least spend time with our budget, even if it's a small amount, it must be in a budget, otherwise don't buy it, even if it's a bargain.
5. Trying to fix debt problems with another problem, further debt - robbing poor Peter to pay angry Paul doesn't solve your debt problems, it's just switch it, that's more like trading your kidney problem for a heart problem, when you can simply have a kidney transplant which will solve all your problems.
6. Not having short-term and long-term financial goals - most people have only short-term financial goals, which is fine, but not good enough, if you have a plan to be debt free, let's say in 5 years, you will make sure that you stop adding extra debt and focus on eliminating any debt you may have and putting that extra money to help reduce debt.
7. Accountability, most people will jump to the opportunity to blame the dark forces for their debt problems on every opportunity while the problem lies within themselves. Until we run our familiies like companies where everyone within a household is accountable, we will never win the fight against debt, and it will continue to ruin our lives.

Happy budgeting,

Mr. Madia Thomas

www.OnlineBudget.co.za

If you feel a need to add to the list, please do so using the comments section below.