
This is How You Can Avoid Overspending While Still Being Able to Enjoy Your Hard-Earned Money

It’s ironic, isn’t it? How there are plenty of high-income households which members still feel like they live from paycheck to paycheck. In fact, as much as 40% of households with an annual income of above $200,000 live this way, according to ABC Radio Perth.
This phenomenon has been attributed to something called a ‘lifestyle creep’ which pertains to how people tend to spend more freely as their income increases. Spending without giving much thought to where one’s money is going can then lead them to feel like they’re always short on money despite having a good income.
Such habits can begin early for some people, according to Money School founder Lacey Filipich. Drawing from her own experiences she tells of how working with people who made a ton of money eventually set her on the habit of spending more money, too.
Fortunately, people can avoid being victims of the lifestyle creep phenomenon and learn to manage their income more cautiously.
Avoiding the Urge to Splurge
Financial advisers recommend working people to put mechanisms into place which would help them bypass the need for self-discipline when the urge to spend comes. David Andrew, a private wealth adviser from Perth, Australia, suggests avoiding credit cards and living off of debit cards instead.
This way, one can feel that they can only use the money which they actually have. Another tip Andrew has is to make extra contributions to things like their superannuation, a pension program a company creates for its employees in Australia.
Meanwhile, Filipich advises people to have a separate bank account, which isn’t connected to their other cards, where they can send money automatically every payday.
A Worthy Cause

Donating to charitable causes can be a great alternative from spending on material things
Another way to spend money better is to use it for a worthy cause. As a listener of the ABC Radio Perth shared, she felt satisfaction and ‘never-ending’ pleasure from giving her money away. When one buys something material like saying a bathroom makeover, a new car or a boat, the satisfaction from that only lasts a couple of months max and one is left wanting ‘another hit’ again, she said.
So, find a cause that you personally care about and see which organizations and groups may need funds that you can contribute your excess funds to.
Present-Future Trade-Off

Strike a balance between ensuring your future financial stability and enjoying the money you have now
Although financial advisers like Filipich believe in ‘aggressive saving’, she also believes that one should be able to enjoy their money without having to wait for their retirement. She personally puts her money into savings or investments instead of putting extra on her superannuation. This way, she can have access to her money, spend some of it if needed and then repay herself afterward.
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