I think there are a few other reasons people tend to overspend. Personally, I see many people in financial trouble and most of them have no concept of the value of money.
This ^ is very important.
Think about this example, if you go out and purchase an item that costs you 2000 on credit. That item has to do more work to return the same profit, as it has to pay for itself. If you paid cash for it, everything that item does is already putting cash back in your pocket right from the start!!!
^ This is how people who provide services should think, we are in the business not to necessarily to only invest, but to spend on items which make us even more money. Well said!
Buy a lawn mower for 2000$, make 20,000$ with it!
Though I admit having this conscience can be stressful, as putting luxuries on hold is very difficult.
I am a good cook, unfortunately I hate my own cooking. So I tend to order out a lot! Doesn't mean it's always unhealthy stuff. I could save tons of money cooking for myself regularly, though I need to have my *thinking of word*.... my.... enjoyable luxuries?
Just like smoking for example. I can hear people tell me to quit every day, but it's the fact that it's something I enjoy. Many of us (all of us) have these NEGATIVE things we do in our lives, in which we enjoy - which put us all in the same spot.
I know a guy who can't stand smokers, he doesn't understand how someone would be willing to do such a thing... Yet this man is 500lbs, has heart problems, and has never eaten anything healthy in the past 12 years.
I never judge him, it's what he enjoys! I'm sure he hates the negatives, just like I hate knowing I'm damaging my lungs - though you really can't stop it unless it's of no value to you.
The thing is, for this man to judge someone on their 'negative' is ridiculous.
Scott, stop smoking.
"I sadly enjoy it, why don't you get a job? Sitting at home for years doesn't make you perfect!"
Everyone should figure out their negative, it'd be fun to discuss!
I smoke a pack a day which may cause me $4k per year
Though it's not the only way to be wasteful with money, and I don't even consider it to be wasteful if it's something I enjoy.
People can be technology freaks, "I need to update my computer/television/cellular, I need this new console, I want to buy all these games for them" **
- this isn't productive, this is an expensive luxury!
We all have em'
- Mr. Breeze Wong