WEB DESK: Ever wondered why you don’t save any money? Do you feel your life runs in a vicious circle, where you work each month, only to be bankrupt as the month ends?
Here are the top 5 reasons people end up spending more money than they earn.
1) Medical Expense
A study done at Harvard University indicates that this is the biggest cause of bankruptcy, representing 62% of all personal bankruptcies. Sudden illness or injury can result in huge medical bills. Try to keep some money aside every month for your medical bills.
2) Job loss
A layoff, termination or resignation can cause trouble in your bank statement. Some employees are kind enough to give you a gratuity. Most just ask you to leave without prior notice.
3) Relying too much on your credit card
Some people simply can’t control their spending. Credit card bills, installment debt, car and other loan payments can eventually spiral out of control, until finally the borrower is unable to make even the minimum payment on each type of debt.
Two people working are always better than one. When the support from one spouse dwindles, financial constraints follow.
Robberies and thefts all pile your expenses. When you suddenly lose your phone, or the money in your bag— unexpected expenses rise.