Why do money run out so quickly?

18 min

Chapter 1. Research
Chapter 2. That’s just life.
Chapter 3. What can be done to ensure that money not only doesn’t disappear into thin air but also accumulates?
Chapter 4. Additional tips from experts.

Do you ever experience receiving an amount with three zeroes, and then it shrinks to an amount with two zeroes? Or even down to zero within a few months… when you don’t even have time to realize it, and it keeps happening in a cycle. It can be frustrating and disheartening indeed!

Maybe it will help you a little, but you’re not alone in experiencing this. This phenomenon has become the norm for many people in life. Receiving money and immediately finding ways to spend it, or even having plans for spending before receiving it, is a common occurrence. Sometimes it feels like money flies out of your account on its own. Is it possible that someone is quietly stealing?

Why does this happen? Why does our bank balance decrease so rapidly that we don’t have time to realize the reasons? Is it possible that the issue lies within our culture and economy? Perhaps in other countries, things appear differently?

Chapter 1. Research

United States 🇺🇸

Research has been conducted in America to understand the reasons behind such financial “evanesco”. According to a study by Experian, a credit bureau, in 2019, the average credit card balance was $6,194, while the average auto loan debt was $19,231. In addition, 61% of Americans live with the expectation of paying for credit card expenses each month, which may indicate that the majority of people are spending more than they earn and rely on credit to sustain their needs. I want to emphasize that any form of credit can cause financial background stress.

According to the American Psychological Association, it has been found that individuals with weak willpower are prone to spending more money and buying additional items compared to those who can control and restrain their impulses. The less control there is over spending, the faster money will run out.

Another study has shown that financial stress is a significant factor in the development of depression, and such depression can lead to decreased motivation and productivity, potentially contributing to the rapid depletion of funds.

One more study that may lead people to say, “I knew it, money isn’t important”. In a study published in the Journal of Economic Psychology, researchers indeed found that individuals for whom materialism is a dominant value tend to have lower levels of financial well-being. Serving possessions can indeed lead to the rapid depletion of funds, especially when individuals strive to create an outward image of a successful life. Even if one has such a life, it is not worth spending money to showcase it.

After the research conducted by the Federal Reserve Bank, all banks have become more willing to provide their cards to people free of charge. That is because people who use credit cards for purchases are inclined to spend more money (which is somewhere out there in the distant Internet) than those who use cash. Using such a life hack can indeed lead to a rapid depletion of funds, especially if a person is unable to fully pay off the credit card debt every month (as depicted in the movie “Confessions of a Shopaholic”). Indeed, there are always positives, such as setting spending limits for oneself on a monthly basis.

United Kingdom🇬🇧

Sherlocks from MoneySuperMarket has uncovered that approximately 25% of Britons spend more money than they earn on various things, such as food and drinks, and entertainment, which may be non-essential. This can lead to an increase in credit obligations and financial problems.

A company that compensates its participants (respondents) for their answers (real and truthful, by the way), OnePoll, has shown that the majority of Britons (approximately 54%) do not budget and lack financial planning skills. This can lead to improper allocation of funds and increased expenses.

Let’s also mention the findings from Experian regarding the Irish population. They indicate that the majority of Irish people (around 63%) do not pre-plan their financial expenses and are unaware of where and how they spend their money. This can lead to improper allocation of funds and poor financial management.

According to a study by TotallyMoney, London is one of the most expensive cities to live in the UK (which is evident), and about 60% of residents do not have an adequate amount of money for their living expenses (which is not so obvious). This can lead to an increase in credit obligations and overall financial problems.


Generation of Ukrainian millennials and others, I congratulate you on your wonderful and eventful lives filled with various crises! Since 2014 and onwards, we all have been in a survival mode.

According to a study by GfK Ukraine, it is evident from the perspective of the population that the majority of Ukrainians (approximately 75%) have low income levels and cannot afford certain things, such as expensive food and clothing. Based on my experience, not everyone even has the means to leave cities where Russians are bombing.

Another study conducted by Ipsos revealed that the majority of Ukrainians (around 60%) do not have a sufficient amount of money for unexpected expenses (as for the existence of anticipated expenses?), such as car repairs or unforeseen medical assistance. This leads to an increase in credit obligations and unnecessary expenses among us.

According to a study conducted by London analysts from Deloitte, the majority of Ukrainians (around 65%) experience a lack of money and insufficient income, which can lead to increased financial stress and have a negative impact on physical and psychological well-being. What specifically creates conditions for money loss?

“The Financial Literacy of the Ukrainian Population: Current State and Prospects” (2019) – a study conducted by the Association of Ukrainian Banks, revealed that less than half of Ukrainians (48%) have an adequate level of financial literacy. The majority of people lack knowledge on how to effectively manage their finances and have low awareness of financial risks. Based on your impression, the actual percentage is not 48%, but rather 28%.

South Korea 🇰🇷

Now, about my beloved Korea, are you aware of the issues that viewers of K-dramas face? For example, the intense competition portrayed in K-dramas that often exceeds the capabilities of an individual. Such high-pressure environments can indeed create conditions for professional growth but also contribute to significant stress, which unfortunately is associated with a high rate of suicides in Korea. Therefore, if you are a Korean and find life difficult, consider moving abroad, and you will be surprised at how much simpler life can be.

“A Study on the Personal Finance Behaviors of Korean Households” (2017) – a study conducted by the Korea Institute of Finance, revealed that 40.2% of households in Korea face issues related to low income and overspending. The majority of people spend money on entertainment and food, while more than half of households do not save money for unforeseen expenses.

“Financial Literacy and Retirement Planning in Korea” (2016) – a study conducted by the Korea Insurance Research Institute, revealed that less than half of Koreans have an adequate level of financial literacy, which can affect their ability to effectively manage their finances and plan for retirement.

“The Impact of Financial Education on Financial Literacy and Financial Behavior: Evidence from a Korean National Survey” (2015) – a study conducted by the Korea Development Institute, showed that the financial literacy of Koreans is influenced by their education and knowledge of financial products. The study also found that individuals with a higher level of financial literacy are more likely to save money for unforeseen expenses and plan for retirement.

According to The Korea Herald, the majority of Koreans (approximately 60%) experience financial stress and inadequate income. Indeed, such financial stress and inadequate income can lead to an increase in credit obligations and unnecessary expenses.
Another study conducted by Credit Finance revealed that the majority of Koreans (approximately 70%) have credit obligations and low savings. Indeed, such financial challenges and the negative impact on physical and psychological well-being can lead to financial difficulties and have adverse effects on overall health.

A study conducted by KB Financial Group indicates that the majority of Koreans (approximately 75%) do not have sufficient funds for unforeseen expenses, such as car repairs or unexpected medical expenses. Indeed, such financial stress and inadequate income can lead to an increase in credit obligations and unnecessary expenses.


Now let’s grab a cup of coffee and a pastry, play some classical music in the background, and read about the research conducted by Eurostat, which stresses that the majority of Europeans (approximately 40%) experience financial stress and inadequate income. Indeed, the financial stress and inadequate income experienced by a significant portion of Europeans can lead to an increase in credit obligations and unnecessary expenses.

According to the research conducted by ING, a majority of Europeans (approximately 60%) face similar challenges as everyone else – they have low savings levels and struggle to afford expensive food and clothing. Based on my personal experience, they may still choose to afford an expensive dinner at the cost of a whole apartment, while renting a room from a friend… Such actions are not understandable without a special logic called “you only live once, and they want to enjoy life to the fullest.” Certainly, this can lead (and does lead) to financial problems and have a negative impact on both physical and psychological well-being in the long run.

The latest study conducted by GlobalData reveals that the majority of Europeans (approximately 70%) do not have sufficient funds for unexpected expenses, such as car repairs or unforeseen medical assistance.


During the cherry blossom season, one can also experience financial stress (approximately 60% of the population) and inadequate income, according to a study conducted by The Japan Times. Credit Saison has revealed that the majority of Japanese people (around 70%) have low savings and cannot afford certain items, such as expensive food products and clothing.

There is a difference in Japanese culture compared to other cultures. According to the Nomura Research Institute, it was found that Japanese people prioritize spending on entertainment and dining out rather than saving. The research also showed that the majority of people in Japan do not spend money on shopping, but instead prefer to allocate their expenses towards food and entertainment. The reason for such expenditure distribution is attributed to the cultural traditions of Japan, which prioritize social gatherings and post-work socializing. In society, we often strive to be “good” and are willing to do everything we can.

So, as we can see, the problems in these different worlds are similar. Insufficient financial literacy, emotions and financial stress, as well as the social desire for recognition within a group, are also common challenges. Indeed, regardless of the economic situations, these are common human factors that can impact individuals’ financial well-being. Many people have credit obligations and a lack of funds for unexpected expenses. So the issue is not about countries.

Chapter 2. Indeed, it’s just life.

I suggest not placing all the responsibility solely on individuals (including parents) right away. The environment and living conditions have a significant impact on people’s decisions, even more than we can imagine. Our environment provides the conditions for our potential actions, and we make choices based on where and how we were raised.

What exactly in our world prompts us to live in a way that we spend more than we earn? What could be more important than our financial security and psychological well-being?

  1. Credit systems. The system is very dual in nature, as it brings both assistance and tragedy to us. We often either overestimate or underestimate our capabilities, which can lead us to take on excessive debt or borrow money when we can actually earn it on our own. The credit system can lead to people spending more money than they can afford. Many people may take out a loan, such as a mortgage, and then find themselves unable to make the payments due to factors like a severe economic crisis, interest rate increases, or job loss.
  1. Low income. Many people have a low income level, which can lead to them not having enough money to cover basic needs such as housing, food, and medical care. This can lead to them spending more money than they earn and accumulating debts. Sometimes, it becomes an endless cycle. The only solution I see is to provide each individual with a consultant who would explain their uniqueness and specific abilities, as well as inform them about opportunities they may simply not be aware of.
  2. High costs of education and medical care. Sometimes everything is not so bad until you want to obtain a good education or get dental treatment. In some countries, the expenses for education and medical care can be excessively high, which can impact household budgets. Too many people tend to take loans to cover these expenses, and often such a choice may seem like the only rational decision in a person’s life situation. However, it can also lead to individuals spending more money than they can afford.
  3. The unstable economic situation caused by factors such as lockdowns and wars. Even if it occurs within a single country, it can still have negative consequences for other countries worldwide. Indeed, the consequences can extend over a prolonged period, which means that the full weight of the negative impacts may not be immediately felt.
  4. Insufficient financial education. What tools and how to use them to manage finances? What are the traps to make you indulge in emotional purchases? Why do you make purchases based on emotions? As we can see, lack of knowledge or awareness about many financial processes in our lives often leads to us spending more money than we can afford.

Every cause is already a consequence of human actions, meaning they are human errors. We have created a system that mirrors our profound mistakes, in both form and likeness. However, it is people themselves who make them real and alive. What specific internal mistakes create such discomfort for us in our interaction with money and the system we have created for ourselves and our society?

1. Emotional and impulsiveness. I’m already tired of writing the article. I just want to lie down and watch TV shows with something delicious or visit my favorite store to see what’s new… I definitely don’t need to buy anything, just to look – the beginning of a story with a predictable ending, with the purchase of unnecessary but very interesting items. Many people tend to spend money when they feel stressed, doubtful, bored, or fatigued. By spending money, we experience temporary relief from negative emotions or simply take a break for enjoyable relaxation.

2 .Consumer habit: Our natural curiosity drives us to explore (buy) something new, something interesting, to experience and see how it works. People play with toys at any age; it’s just that the toys change their appearance and become slightly more expensive. Such purchases satisfy our need for exploration and testing something new, which evokes a short but delightful feeling of happiness.

3. Financial stress. Meeting obligations and needs, whether personal, familial, or social, can be challenging. We are responsible for our own lives and the lives of our families, and we want the best for ourselves and others… and that’s where the problem lies. We want to be satisfied with our current state. How is that possible when there are always those who seem to live more exciting lives than you do (especially when comparing sporadically)? There will always be those who appear wealthier in your eyes, better in your favorite field, healthier, more skilled in your hobby, come up with more profitable solutions, and so on. It is a good practice to acknowledge and appreciate something unusual and exceptional – something that stands out and is more vibrant. We need ideals to have a vision of where to go. However, this often leads to self-doubt, disappointment, and feelings of inadequacy, thinking “I am not good enough.” Indeed, people often measure their self-worth based on their earnings. That’s not right; you are not defined by your gadgets, possessions, job, and other external factors. Це вони відображають ваші потреби, ваші інтереси та пристрасті, і все. To everyone reading this, remember that you are priceless and unique.

People who earn millions per month, 5,000 per month, or nothing at all are not defined by the concepts of good or bad. They differ only in their understanding of themselves, awareness of their unique strengths, and the ability to leverage them in a society where those strengths can be appreciated (rather than devalued).

4. Social culture. We are all social beings and we require positive evaluation, respect, attention, and other forms of acknowledgment from society. Even introverts need those 2-3 people with whom they can occasionally have conversations and connect. Our society promotes a culture of consumption where people feel social pressure to buy various goods or services to reflect their status or achievements. For example, in certain social circles, it is customary to have expensive watches, luxury accessories, and other similar items. Indeed, it may not appear as a rule written on the doors of entry into a society, but rather an unspoken norm or expectation. When we enter a circle of unfamiliar people, we observe how they look, how they carry themselves, and we gather facts about them. For example, we may notice that the man who is smiling in jeans and a jacket is the CEO of a technology company, while the elegant and calm woman started her own business at the age of 16. And we are drawn to those achievements that we hear about, often unconsciously developing an interest and tendency to emulate those who become our role models. We may buy similar products and imagine ourselves as different people by doing so.

5. Lack of knowledge: It’s again related to financial literacy, but let’s consider it from a different perspective. Our ability to concentrate, our attention has limits. We cannot constantly learn everything non-stop. We cannot physically possess all the information in our world and rationally respond to every economic event. If, for example, you are a creative person who is far from understanding the principles of another field, or a mathematician who has delved deep into their own subject and whose cognitive abilities are simply not ready to absorb information from the “other” world, When we focus on a particular task or information, our brain consumes more energy, and the longer we do it, the more exhausted we can become. If we have studied a very challenging topic today, we have already expended a lot of energy, and it takes time to replenish our energy and be ready to absorb new knowledge. Moreover, each of us has different aptitudes for subjects and varying abilities to sustain attention.

These are not all the reasons. But I consider these five factors as the main enemies of our finances. However, there is never just one side to the story.

Thanks to our emotions and impulsiveness, we can create inspiring things. Financial stress teaches us self-understanding. The culture of consumption helps us develop both as a system and as individuals, while also creating conditions for earning money. The incapacity of our minds to absorb everything at once or the presence of energy limits allows us to delve deeply into certain subjects and approach others more superficially. This creates unique combinations that shape our worldview and contribute to our individuality.

Chapter 3. What can be done to ensure that money not only doesn’t disappear into thin air but also accumulates?

1. Automate your savings and make them invisible to yourself. Utilize gadgets and automatic payments. I won’t advertise specific apps as I haven’t found the perfect one yet. Ask your bank if they have such features available. For example, you can inquire whether your bank offers a feature where 2% of each of your payments can be automatically sent to your savings account. Alternatively, you can set up a monthly transfer from your card to a dedicated savings account that you use exclusively for accumulating funds.

2. Create a budget and stick to it. Monitor your expenses using the same apps. I understand that for some people, it may sound either unrealistic or too challenging because they are already struggling to make ends meet. However, I encourage you to give it a try for at least a few months. It may help you gain better visibility and control over your finances, and even small changes can make a difference over time. After it, we could continue the conversation. Try not to exceed the planned expenses. Plan together if you have a partner, so you can support each other. The main thing is not to argue about this topic but genuinely support each other in working towards a shared goal.

3. Give up luxury or keep only truly significant items. If you are aware that certain spending habits are unnecessary, try to change them. For example, if you have a fondness for expensive handbags, that’s great, but it would be wise to have 1-3 bags and carry them on occasions where your investment is truly appreciated, giving you an advantage. And for everyday use, opt for something more ordinary.

4. Learn how to invest. Investing can be one of the most effective ways to grow your savings. Study companies that you like or have heard about and try investing small amounts to start. Begin learning the art of investing. However, before you start, it is advisable to consult a professional.

5. Don’t become dependent on credit cards. Credit cards can be beneficial if used responsibly and effectively. However, if you spend more than you can afford and only make minimum payments, you can quickly find yourself in a difficult financial situation. Strive to live without relying on credit as much as possible. And resort to them only in rare cases of necessity.

6. Look for opportunities to earn more. If you want to accumulate more money, try finding ways to increase your income. Consider opportunities for salary increases, finding additional jobs, or starting your own business.

7. Find joy in life. What I meant to say is that it’s not just about positive thinking, but rather about developing the skill to create some form of pleasure for yourself every day, regardless of whether it requires money or not. Later on, you will realize that most of the pleasures in life are actually free. If you satisfy your need for enjoyment every day, you will be less susceptible to emotional purchases and seeking emotions in expensive items.

8. Don’t panic if you make a mistake. I am confident that every person makes at least 100 mistakes in their life. And those who have achieved social success have likely made even more mistakes along the way. How many mistakes have you made?

No one is perfect; making mistakes is part of our nature. In our mistakes lies our experience and uniqueness. The most important thing is to learn from your mistakes, strive not to repeat them in the future, and NEVER give up on your path to your goal. Then, even your wildest dreams become a matter of time.

Chapter 4. Additional tips from experts.

America: “Saving is very important. Avoid debt.” – Jamie Dimon, Chairman of JPMorgan Chase. He also recommends investing in diverse assets, such as stocks and real estate.

United Kingdom: “Regularly save money in high-interest savings accounts and use credit cards with rewards to save money.” – Martin Lewis, founder of MoneySavingExpert.com.

Japan: “Save 10% of your income” and “do not spend more than you earn.” He also advises investing in long-term assets, such as pension funds and investment funds. Those are the words of Ryuuta Takahashi, the author of the book “The Richest Man in Babylon in Japanese.”

Korea: “Control your expenses” and “invest in stocks and other financial instruments.” – Sean Lee, founder of ValueInvestAsia.com.

Europe: “Focus on saving money and investing in various assets based on your financial goals and risk profile.” – Ramin Nasibov, a financial expert from Germany.

Ukraine: “Focus on saving money and using credit cards wisely. Invest in various assets such as stocks and bonds, and pay attention to international investment opportunities.” – Igor Palitsa, founder of the financial portal investory.ua.


To ensure that money doesn’t rule your life, you need to: regularly increase your earnings, spend less than you earn, avoid using credit (or use it wisely), control your expenses, seek assistance from others, value and maintain your physical and mental health, and continuously learn new tools and strategies. And most importantly, learn about yourself and your actions, even if you make a mistake – there’s nothing to be afraid of. Only together, good and bad mistakes create our lives, which are priceless for everyone regardless of language, mentality, or circumstances.

May your money serve you well!