Wasteful spending can cause a person to accumulate massive debt, loss time, damage their credit score, and empty their savings account. Millions of individuals participate in this careless behavior. The state of the economy is partially because of “wasteful spending”. This type of behavior needs to be curved or it can lead to serious financial hardship.
Massive debt
Millions of people apply for and attain unsecured debt. This unsecured debt is known as a “credit card”. Credit cards are the cause of many people going into debt. This debt can add up over time and cause a person to go into bankruptcy. That is the last resort but it is still bad. When people resort to this it is because they feel they have no choice, but this stays on the credit report for years. That is the price they pay for a “quick fix”. It is better not to engage in the use of credit cards unless the money is their to repay the bill.
Affects The Credit score
Wasteful spending can do damage to the credit score because as I mentioned earlier, a person will eventually get a credit card or some type of loan just to spend money. If they do not have the money, they will begin accumulating debt they can’t repay on time. If a person begins accumulating unnecessary debt they can’t pay back, it will show up on the credit report. Over time it will bring the score down. This does not help them, but hinders their progress.
Depleted Savings
In order to keep a float during these tough times a person needs money in a savings account. Without one, it will be harder for them to keep up. Wasteful spending if left unchecked can lead to depleted or empty checking account. Some people believe they need things to keep them happy. This proves to be erroneous when they have the need to buy more things to get that same feeling over and over again. Before a person realizes, the savings account is empty and they have nothing. They will either need to replace it or get a second job to make up for the loss.
Wastes Time
The more precious commodity on earth is ” time “. It can not be replaced. When a person engages in wasteful spending, they essentially waste valuable time they could be using to accumulate assets and other income producing products. They could be using their time to make money. Every minute that goes by in the name of “wasteful spending” is gone forever. You know what the saying is “time is money”.
Wasteful spending can be avoided when a person plans how they should spend their money. If they have a specific goal to reach, wasteful spending will not interfere as much. Goals and accomplishments will diminish the need to waste.