You spend without sticking to your budget.

You spend more than you earn. If you want healthy personal finance, do not let your expenses go over your earnings.

They have no sense of money. They just spend until their pocket is empty.

We are talking about cold cash here.

But that is not all, when their pocket is empty, they still have credit cards, they use it over and over again, buying goods that many times they do not even use.

Leisure posts with surplus.

These people for sure do not make a budget or if they do, they do not stick to it and spend more than planned.Some people make a budget, but they post holidays, leisure, going out to restaurants, travel and everything that is fun, before they post anything at savings.

What appends at the end of the year? They have to borrow to balance their budget.
Instead of savings, they have created debts.
They do not have any emergency money and are getting deeper and deeper in a financial situation that will be very difficult to get out of.

Fixed expenses first.

The way to make your budget is posting your revenue, then post all your fixed monthly expenses.
In that same column, post some savings, post enough so that at the end of the year you will have savings that are 3 times your monthly fixed expenses.
If you do that, you have a chance to save some emergency money.

If you do not have to use it in case of emergency, then these savings can go to repaying your debts or to make investments .

Variable expenses

After these posts are filled, then post all variable expenses and in the end, if you are left with a surplus, post all the leisure expenses like holidays travel on so on.

If you are living debt free, you are rich.

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