This is a prime example of what happens with a lot of people who I've spoke with. The main and only reason for this is usually mismanagement of funds, buying liabilities using credit cards and taking out loans. Not buying assets often enough and not taking advantage of compound interest...
For example: Buying a new car that requires you to take out a loan. Then buying things using credit card when you dont have a way to pay off the debt by the end of the month leading you to paying interest. Paying of the lowest interest rate debts off first instead of paying ones that should be higher priority. Subscriptions also tend to kill the salery.
I personally found dividing up my monthly pay into days very helpful for example: if I earned 4k I would divide it up into 200 dollars x 20 days in a working month. Then I would calculate how many days do I need to work to pay my expenses (food, electricity, rent, subscriptions and so on)
In my case I lived with my friends so rent my expenses where very low. only about 1/20 of my wage or 2 days work. Everything else was spent on education and investments.
I also had 1 days wage set aside for having fun ( going to cinema, gym, eating out, or buying things I wanted)
if you haven't done so already make sure you know your expenses and have a budget plan to cover them from most expensive to least.
For example: Buying a new car that requires you to take out a loan. Then buying things using credit card when you dont have a way to pay off the debt by the end of the month leading you to paying interest. Paying of the lowest interest rate debts off first instead of paying ones that should be higher priority. Subscriptions also tend to kill the salery.
I personally found dividing up my monthly pay into days very helpful for example: if I earned 4k I would divide it up into 200 dollars x 20 days in a working month. Then I would calculate how many days do I need to work to pay my expenses (food, electricity, rent, subscriptions and so on)
In my case I lived with my friends so rent my expenses where very low. only about 1/20 of my wage or 2 days work. Everything else was spent on education and investments.
I also had 1 days wage set aside for having fun ( going to cinema, gym, eating out, or buying things I wanted)
if you haven't done so already make sure you know your expenses and have a budget plan to cover them from most expensive to least.
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