Are You In Denial About Your Spending Habits?
That conservative, well-planned savings plan you had may not be doing as good of a job as you think, and you don’t even know it. According to MSNBC, a new study observes that of 3,000 Americans, about half spend more than they earn at least a few months out of the year. But even though they acknowledged the spending, only one in 10 participants said that their lifestyle was more than they could afford. In addition, of the people who spend more than they earn part of the time, around 36 percent use their savings to meet their financial needs. Twenty-two percent use credit cards and 12 percent simply make late payments on their bills. It would appear Americans are spending and don’t even realize how much they are spending.
The Federal Reserve reported last week that Americans seem to be more ok with taking on debt; Americans have increased borrowing in recent months for cars, education and credit cards. Others may feel obligated to live beyond their means. The median household income has decreased by seven percent.
Among all the denial, at least the other half, rarely spend more than they earn in a month.