in debt The holidays have a way of digging down into everyone’s pockets. You spend lots of money on gifts and food and travel, then you’re left with a whopping debt when you finally reach the new year. Very few people stop to take the time and figure out what is causing them to get into such a huge amount of debt. This article will lay out five specific ways most people get into debt.

1. Whip out your credit card every time you need to make a purchase. The majority of people who spend a lot during the holidays do it with their credit card. Credit cards make it enormously easy to spend money because you don’t have to count out your cash. All you have to do is whip out the card and BAM it’s paid for.

2. Spend money you don’t have. Another common cause of debt is trying to keep up with the Smiths, so to speak, by spending money you don’t really have to spend. It’s so easy to get entangled in this trap without even realizing it. You spend money to impress others. In all truthfulness, they’re never impressed by your spending anyway!

3. Splurge on your children. Christmastime is especially rough on parents. Naturally, you want your children to have everything and more. But is it really good for them, or you? By splurging excessively on your children, you’re not only putting yourself into debt, but you’re teaching your children by your actions that it’s okay to blow money on things that aren’t really necessary.

4. Don’t live by a budget. One of the worst things for anyone to do is to not have a spending budget. If you don’t know where your money is going, how can you be a good steward? Living without a budget enables you to spend more and more until you’re all spent out.

5. Live in the moment. Just as living without a budget can get you in trouble, so can living in the moment. When you live in the moment, you spend money without even thinking about how much you’re spending or what it’s going towards. In the end, you’ll end up broke and with nothing to show for all the money you spent.

Related Posts

Like this post? Subscribe to my RSS feed and get loads more!