This is the million-dollar question. That temptation is always there, no matter where you are or what store you’re in. Whether you’re there for “1 thing”, or you’re “just looking”, it’s very likely you’re going to buy something.
I’m sure you saw there’s a great sale going on or a new shoe collection is dropping next week. It’s so hard to resist these urges to keep buying. But don’t worry, we’re going to dive into why we spend so much and how to stop. It won’t be easy, but you’ll be happy you did.
Reasons for Spending So Much
Overspending is a huge problem that can lead to accumulating a huge debt, or further worsen your depression. It’s seen as a cure for feeling down that day, but it never really helps. Let’s look at why we spend so much money.
Mindset
Retail therapy is a real thing for some people which leads to some terrible decisions. You may think shopping to feel better is a good thing until you’re sad or stressed out again a few hours later, your credit card bill pops in your inbox and now you’re feeling even worse.
I’m sure you realize how hard it is to understand yourself and how you would react in situations like seeing a sale going on or just your general tendency to spend money aimlessly.
No Budget
Another reason for spending so much would be because you have no budget in mind. It’s okay to spend some money on things you don’t need, but not when there’s no budget there to curb your spending.
With a budget, you have a good idea of how much you can spend for the month, which would make you think twice about what you’re trying to buy.
Influencers
We’re all very easily influenced by what we see every day. If you’re scrolling on social media and see some really delicious-looking food. It’s likely you’re ordering that tonight. If you see your favorite influencer showing off a new dress, I’m sure you want it.
It’s there to job to make you want the things they have. This is the new 21st century ad and it’s definitely working. One of the largest ad agencies in the world recently announced that over 50% of their annual budget was allocated to digital ad spending.
Companies and influencers are working overtime to get you to buy things. It may seem impossible to not give in to those urges, but below you’ll find top ways to help you. Keep reading.
Credit Cards
This one really got me too back in the day. I hate spending money. To the point where I was almost considered cheap. But when I did, I just swiped the credit card. There’s not much pain involved with swiping a card.
I had plenty of balance available on my credit score and the card wasn’t maxed out yet. I looked at that available balance as additional money for me to spend, which caused a deep hole of debt I had to work hard to get out of.
How To Stop Spending So Much
Okay, we know some of the reasons why we spend so much money. Now how do you stop it?
Know Where Your Money Is Going
It’s so easy to just blindly swipe that credit card and have everything become a blur during one of your monthly shopping sprees.
You need to understand the areas where you can’t negotiate on spending, like mortgage and utilities. Like they say on Shark Tank, Know your numbers. Know how much money you have on hand and how much you will need to live and make it through the month.
Make A Budget
This one goes with the previous point. Create a budget to carve out free spending you can make each month. Walking into a store without a budget in mind is like telling children they can buy whatever they want in a candy store. It’s just a disaster waiting to happen.
Understand your day-to-day spending like fixed expenses, which I just mentioned. Now budget for your meals and any saving or investing you want to do. Don’t forget the emergency fund! Whatever is left over you can spend guilt-free. Just remember to leave a cushion leading into the next month.
Cook At Home
Ordering out can get real expensive real fast. In New York, you’re looking at takeout for 2 to go up to $60 at the minimum each night. That’s just for dinner. Just 1 meal a day would turn into $420 a week. We didn’t even add up breakfast or lunch!
Start cooking at home to save money. You’ll be surprised how much you will actually save and you may even like it.
Avoid Debt
I’ve mentioned how easy it is to swipe a credit card. You don’t feel it like you do with cash. Funny enough, I feel the opposite. If I have cash in my pocket, I view it as extra money lying around.
Go with what works for you, just remember the dangers of overexerting yourself on spending with your credit card. If you budgeted for this spending already, there’s no reason to rely on your credit card.
Try your best to avoid getting yourself stuck in a debt you can’t get out of.
Make New Goals
Create financial goals for you to achieve. Maybe you want to save a certain amount for a house cut a few years off your retirement age. Having financial goals in mind will help curb your appetite for spending. You’ll be more interested in reaching those goals instead.
The more spending you do, the slower you’ll reach your goal.
Seek Therapy
Sometimes spending so much money can’t be controlled. It can become an addiction. It’s not a bad thing to acknowledge you have a problem and to get help. Don’t be afraid to ask for help.
