Spending temptations are everywhere. You can see it in the billboards displayed along the streets. You can watch it in commercials and various programs. This is the reality that we have to live in day in and day out. It is very hard to curb unnecessary spending because everywhere you turn, you see something that will make you want to spend.
Companies spend millions of dollars on marketing and advertising campaigns. You can bet that these campaigns will be effective – it will make you want to spend. This is how the bad spending habits start. These corporations are using sneaky methods to get us to spend.
According to the article published on Bloomberg.com, consumer spending in the country is still high – despite the shocking Brexit and economic growth slowdown. While the article mentioned that the employment rate, salary increase, and low credit rates are contributing to the spending power of American consumers. Of course, this does not mean we should recklessly spend left and right. It is important that we limit our spending and we continue to regulate how we spend our money.
5 ways you can curb the temptation to spend
Curbing our spending temptations is easier said than done. For some of us, we got so used to spending that it is like our second nature. After all, we live in a consumerist society. In order to survive, we really need to spend. It is not possible for everyone to live off the earth because there is just no room for that anymore.
While spending is a necessity for most of us, that does not mean you cannot do anything to control our spending urges. Believe it or not, there are 5 ways that you can triumphantly get past the spending temptations that are thrown your way.
Shop with a list.
Start by always shopping with a list. Before you leave your home, make a list of everything that you need to buy for your house. If it is not yet needed or you still have enough supplies until the next shopping date, do not include that item on your list. Bring this list with you and stick to it! Do not buy anything that is not on the list. This is why you need to be thorough when you are creating your list – to remove any doubts that you might miss buying something.
Wait before you buy.
In case there is something that you really think you missed placing on the list, learn how to wait. This is the next tip that will help you curb the lure of spending temptations. If there is something that you want to buy, put it down first and then walk away. Try to complete the other items on your list and if you still feel strongly that you need that product, then go back and get it. Sometimes, we feel like we really need to buy something simply because it is on sale or we are attracted to the way the product is presented to packaged. But once we no longer have that item in our sight, we sometimes do not feel like we need to buy it – at least, not as strongly as when we had it in our hands. So wait before you buy. It is a great way to guarantee that we really want to buy something.
According to the data from Consumer Credit, only 14% of the respondents of their survey said that they use cash. This should be done more often. It is believed that when you pay cash in purchases, you will feel more hesitant to part with it – thus making you spend less. When you use a debit or credit card, you do not really feel anything with the purchase. In fact, you feel more empowered – which is dangerous if you want to spend less.
Do not shop with spenders.
When you are trying to curb your spending habits, it is important for you to stay away from spenders. Sometimes, our peers influence our spending behavior. If you want to spend less, you will benefit more by going with savers. Spend time with your spender friends and colleagues if you know that it will not be a shopping event. If you will eat or hang out and have coffee, that is okay. But if they have plans to go shopping, skip the gathering.
Ask the right questions.
Finally, you should probably ask the right questions when you are trying to overcome spending temptations. Knowledge is the key to making better decisions. This will help you ponder on the importance of a particular expense. For instance, ask yourself if you will buy the item even if it is at full price. If not, then you are probably just interested in buying it because it is on sale. Another question you can ask is how would you feel about the possibility that you will throw this product away in a couple of years? Will you still buy it? These questions will help you weigh the pros and cons of buying a product.
Different ways overspending can destroy your finances
The truth is, we need to spend and our economy thrives on consumer spending. However, you have to make sure that your every expense is done for the right reasons. If you cannot say no to spending temptations, you will be in danger of overspending. And we all know where that will lead.
Here are the various ways that overspending can ruin your finances.
Puts you in debt. Where do you think you will get the money when you spend beyond your budget? Obviously, you will borrow it. If you want to keep your household debt from becoming a burden, you need to control your spending. There is no other way for you to keep debt from ruining your finances.
Forces you to sacrifice financial goals. Another reason why you need to stay away from spending temptations is to preserve your financial goals. Instead of saving or investing the money in leading you one step closer to your goal, spending it will take you a step back.
Endangers your relationships. According to the data published on CNBC.com, money is the leading cause of relationship stress. If your spending behavior lands you in debt, you can be assured that this will not end well for your relationship – especially when only one partner acted on the debt. Do not let debt ruin your marriage. Learn how to spend your money wisely.
Here is a video that provides tips on how you can change your spending habits.
Common questions about spending
Question: What is a bad spending habit?
Answer: A bad spending habit is when your expenses are threatening your financial security and stability. This includes spending beyond your financial capabilities, buying something to keep up with your peers, etc. Any spending that is unnecessary can be considered a bad spending choice.
Question: What is a spending plan?
Answer: This is a financial plan that will help you organize your spending. It defines the important expenses that you have to focus on – especially when you have limited financial resources.
Question: What is spending power?
Answer: This is your financial capabilities to purchase something. It is not only measured by your discretionary income. It is also measured by the tools that you can use to make purchases.
Question: Why is spending money good for the economy?
Answer: The US economy is 70% reliant on consumer spending. If people spend their money to buy good and services, companies will profit. The respective employees and workers of that company will also gain from stable jobs. In return, the government will benefit from the taxes and the nation can use these taxes to improve the overall lifestyle of the residents.
Question: How to control spending?
Answer: If you want to control your spending, you need to be aware of your overall financial situation. Know your financial goals, have a budget plan, and understand your financial capabilities. A plan is the best way to control your spending. If it is not part of the plan, then it should not be spent on.