If you use phrases like «it’s better to enjoy while you can» and you can’t wait for the end of the month to buy everything you want, surely this note is for you.
Here are some of the things that people with a «fair budget» prefer to spend their money on.
In developing countries, like ours, the social gap is usually quite obvious. If we speak, then, in economic terms, and in a very simple way, it could be said that the population is divided between «rich» and «poor».
The poor person is someone who has «the inability to achieve a minimum standard of living.»
According to the World Bank.
This is a concept that has also defined a line in order to analyze and evaluate the conditions of poverty in the world, based on individual consumption and taking into account two key factors; firstly, the expense necessary to access a minimum standard of nutrition and other very basic needs and secondly, the amount that varies from one country to another and that reflects the cost of participating in the daily life of societies.
For the National Administrative Department of Statistics, DANE, in 2018, the income of an average household in Colombia was $2,251,000, while its expenses reached $1,909,000. Thus, a family of four had $342,000 to spare, after meeting all basic needs.
It is no secret to anyone that some people can find it difficult to properly manage their money, and that is why we invite you to identify certain wasteful behaviors when managing income and, thus, be able to reach the end of your salary with expenses under control.
Things on which “the poor” spend money
1. Vehicles
Although the acquisition of cars or motorcycles can be very useful, since it helps us save a lot of time when moving around, and, in addition, provides a feeling of comfort and autonomy, it is important to keep in mind that it is not a decision that should be taken lightly, as it can represent a large amount of money and time. This is why, when thinking about investing our money, we must bear in mind that vehicles tend to devalue over time, and most importantly, they imply various expenses in the medium and long term.
On the other hand, if the decision is made to invest in a used vehicle, it is most likely that it will have to be made adjustments and repairs, due to the years of use. Remember that this investment is only useful when the vehicle generates profits.
2. Cell phones
Today more than ever, we find ourselves in the midst of the digital age, full of technological advances, connectivity and, why not?, cyberculture. In everyday life we are surrounded by information and movement; social networks, news and interconnection require our constant interaction, and that is why, if you want to consider not having a smartphone at this time, it seems crazy.
However, it is convenient to acquire a reasonably priced device, within our borrowing capacity, since many of these usually cost enormous amounts of money.
The most advisable thing in these cases is not to get into debt with a device in 12 installments, because, as much as it seems that you are saving or having sacrifice, you are generating more expense than you imagine.
3. Luxury clothing and accessories
Feeling good and comfortable with our own look is fundamental; being able to express ourselves through our image, maintain a healthy relationship with physical appearance and perceive ourselves in a unique way before others. And it is that what you wear says a lot about you, it is completely normal to want to invest in a cool and fashionable wardrobe.
However, it is not necessary to spend our entire salary trying to comply with ephemeral and elusive fashions. Most of the time, buying branded clothing and accessories is not profitable at all, and much less if we have a tight budget.
Many people tend to spend what little they have left at the end of the fortnight on clothes from the latest collection, which is a big mistake, when it comes to saving.
4. Fast food
It is clear that feeding ourselves is a basic need, it is inevitable that much of our money goes on food, however cheap it may be. One of the main conflicts when buying food is the lack of time, because many times we find ourselves in the middle of a thousand things and we end up consuming fast food to avoid the wasteful task of cooking and thus be able to optimize our time.
Therefore, and more often than our pockets like, we end up eating a la carte several times a week, be it a hamburger, a hot dog or even a pie. We do not realize that a large amount of money is being consumed that could well be saved by eating homemade and healthier.
At the end of the day, it is best to have a nutritious market once a month, organize the time to cook at home a few days of the week and thus be able to enjoy good meals, without spending a lot of money.
conclusion
And you? Tell us in the comments what you usually spend your money on!