Why You Should Never Spend More Than You Earn

We’re in an era where we require more and more material things to make us happy (and that “happiness” is actually a temporary state of mind, so how much is it really worth?).

This pursuit of material possessions – bigger, shinier, and more expensive – often leads people to overspend and live beyond their means.

We can’t really blame ourselves, though, can we? Commercialism and advertising bombard us with messages that constantly encourage us to buy more, and to believe that our happiness is directly related to the things we own.

But the reality is that overspending leads to financial stress and insecurity, none of which is good for our mental and emotional well-being.

But I get it, that new phone or designer outfit has your name on it, so why not just put it on the ol’ credit card and worry about paying it back later? Glad you asked. Let’s explore exactly why that’s a terrible idea.

8 reasons why you shouldn’t spend more than you earn

1. You keep debt from knocking on your door

Living beyond your means is like inviting an unwanted guest to your house party. You know, the one who shows up unannounced, eats all your food, and won’t leave? That’s debt. Keep it from barging into your life by sticking to a budget that aligns with your income. It might seem boring, but it’s like using a “do not disturb” sign to keep the debt monster away.

2. You become a money-saving ninja

When you live within your means, you train your mind to become a lean, mean, savings machine. You see those expensive shoes? You don’t need them. That new smartphone upgrade? Nope, your old one works perfectly fine. This isn’t about being cheap; it’s about becoming financially savvy and recognizing that the most worthwhile investment is in your financial health.

3. You always have a safety net

Living paycheck to paycheck might sound exciting in a “live for the moment” kind of way, but there’s a downside. When life throws a curve ball (and trust me, it will), you need to have a safety net.

Spending less than you earn lets you build up a contingency fund, and believe me, there’s no better sleep aid than knowing you have a stash of cash ready to catch you when life gets bumpy.

4. Your stress levels take a nose-dive

Money worries can take a toll on your health, causing sleepless nights and gnawing anxiety. When you spend less than you earn, you slash those stress levels, and life becomes a beach. You can’t put a price on peace of mind, can you?

5. Your future self will thank you

Ever dream of retiring on a beach, sipping a cocktail, and enjoying the sunset? Well, spending less than you earn is your secret weapon to reaching that goal. Each dollar saved is a step closer to a worry-free retirement. Your future self will undoubtedly thank you for your foresight.

6. You cultivate a sustainable lifestyle

Living within your means is about more than just money; it’s about sustainability. By not succumbing to the pull of consumer culture, you minimize waste, reduce your carbon footprint, and contribute to a more sustainable world.

So, not only are you taking care of your wallet, but you’re also looking after Mother Earth.

7. You discover the joy of simplicity

Contrary to popular belief, life doesn’t have to be complicated. There’s beauty in simplicity, and by spending less than you earn, you get to discover it.

This minimalist lifestyle allows you to focus on what truly matters, like experiences, relationships, and personal growth, rather than material possessions.

8. You’ll work harder

We all like nice things, and sometimes it’s okay to give in and buy that new purse that everyone’s talking about.

Now if you make a habit of spending only what you have and can afford, you won’t launch yourself into debt, you’ll simply work harder in order to afford that luxury item. This could involve picking up extra shifts or even starting a new side hustle.

Final thought

Living within your means might not be as glamorous as the lifestyles of the rich and famous, but it’s a surefire way to maintain your financial health, reduce stress, and live a more fulfilled life. Who needs a shiny sports car when you have a full bank account, a sound mind, and a carefree spirit?