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Disorganized Spending
You want to know the number one reason why youre broke?
Its not what you think.
Its not the economy, its not your job, its your lack of a plan.
Being disorganized is one of the leading causes of being broke.
As Hall explained, the middle class can have a lot of moving parts in their finances.
They have more assets meaning theyre purchasing more things and have more opportunities tobuild wealth.
But if they dont understand how all the parts fit together, they can end upoverspending.
Stop living in the dark about where your moneys coming from and where its going, said Hall.
Without a clear plan, youre just throwing money into the wind.
You think you need that new sweatshirt from Target?
Think again, said Hall.
And you have the money to do so.
Hall warned that without a plan, youre probably overspending on clothes.
Wake up and smell the overpriced cotton, people, Hall added.
Cars
Cars are the classic, middle-class status symbol.
When youve worked hard to get where you are, you deserve that shiny new SUV, right?
Not according to Hall.
The majority of people in the middle class didnt come from the middle class.
And typically, that means theyre going to get anice, new car.
Hall noted that on average, people spend about $15,000 too much on a vehicle purchase.
Thats fifteen grand down the drain, people, he warned.
And thats before you even factor ingas and maintenance.
So, what do you do?
You go out to eat, effectively doubling your food expenses.
He added that theres nothing wrong with that as long as yourebudgetingfor it.
He also suggested treating your food budget asone big pot.
He continued, It doesnt matter if its going out.
It doesnt matter if its groceries.
You have $900 a month… and then you could balance it from there.
And the middle-class spends a lot of money on it because they want whats best for their kids.
There aremore affordable waysto keep your kids active and engaged without mortgaging your future.
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