do you have a spending problem

“I don’t have enough money” 

“I’m broke, I need a raise” 

“I need to make more money” 

If you’ve said any of these things chances are you’re experiencing one of two things; either an income problem or a spending problem. 

So many of us wish we could make more money before we really analyze whether or not we already make enough money to support our lives. Are you living outside your means? Or do you really need to increase your income? Let’s find out the difference between an income problem and a spending problem and try to figure out which you fall into. 

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So many of us are struggling to make our financial situations work, we either have too little money, too little stuff, too much debt, or just no financial education.

The first step to becoming a better financial steward is to understand how you handle your money and what you can do to make it work for you instead of against you. 

DIFFERENCE between Income Problem & Spending Problem 

INCOME Problem Explained

An income problem is just that, a problem with your income. If you’re experiencing an income problem you aren’t making nearly enough money to cover your basic needs. This means that you’ve managed to cut every single unnecessary expense from your budget and you’re still struggling to make ends meet.

There are different things that could drive you to have an income problem. You could just be in a field that doesn’t make you enough money, or you could be in serious debt. In my opinion, the only debt that is valid to be included in an income problem is non-consumer debt. This could include your student loan debt or any medical debt that you have. Things that you really couldn’t avoid easily. This doesn’t include credit card debt or car loans.

If you are unable to pay off your student loan payments each month, and pay your bills and feed your family, chances are you have an income problem. 

SPENDING Problem Explained 

A spending problem means that you’re living way above your means and because of it, you have a whole lot of month at the end of your money. You’re focusing on the things that you want rather than the things you need. For a lot of people, their extra spending happens on credit, which will only lead to more issues. They’ll end up with hundreds of dollars just in interest payments and for some, it’ll take years to pay it off.

spending problem

HOW TO CHANGE your Financial Situation

THINGS TO TRY if you have an Income Problem

  • get a part-time job 
  • start a side hustle 
  • ask for a raise 
  • ask for a promotion 
  • transfer to a better position 
  • get a roommate to cut living costs 

THINGS TO TRY if you have a Spending Problem 

If you’re currently experiencing either an income problem or a spending problem, let us know about it in the comments! We would love to hear your stories, and maybe they could help someone else!