More personal spending isn't good
“Personal Spending” is a financial indicator, which can have a positive or negative effect on the Forex market. By definition, it is a measurement of non-essential expenditure. It is a scale, which measures the spending by households and non-profit institutions. U.S. Department of Commerce releases this data. Simply put, these are your personal-nature expenses such as eating dinner at a restaurant, visiting a park etc.
Traders as well as economists consider an increase in “Personal Spending” a good thing. After all, if people stopped eating expensive meals, how will restaurant owners make money? :)
Flourishing small businesses help elevate country’s economy. The more money they make, the more goods they order. Hence, the thriving circles of supply and demand. The key element here is the number of paying customers. Money spent, for the above said purposes, helps countless establishments to stay in business; no one can doubt it but what is this costing us consumers?
Save Money, stop spending it!
The average household debt in the US is now above $129,000. Public is paying thousands of dollars each year in interest. Majority of US citizens are buried deep in debt, but the personal spending graph indicates that people aren’t worried about it at all. Instead of saying money, they are spending it like there is no tomorrow. Americans are pumping more and more money in the economy at the cost of losing their own financial freedom by becoming prisoners of moneylenders. Banks are the biggest beneficiary in this dilemma.
If a person makes $300 a day and spends $50 in personal spending, then this sounds like a good budget plan, but if he starts to spend more money than he earns, then he is digging his own financial grave. You don’t have to buy a every new iPhone. Apple releases a new model after every few months, so control your temptations and use your current mobile phone for few years. It would be even better if you chose to buy inexpensive items that work as good as its high-priced adversaries. Don’t be fooled by fancy advertisements and hypes.
First earn, then spend!
Spending money on non-essential items is not a bad thing as long as you have a good budget plan; one that allows you to avoid debt all together or helps in reduce it, and enables you to increase your savings as well. Think about today and the future. The joys you get by spending money on unnecessary things are temporary, but the pain of debt is long lasting and can make your life miserable for years to come. Put your foot on the brakes and save money starting now. Clearing your debt should be your priority number one.