Do you have the urge to overspend?
I recently sat down with CBS’ KCAL News to explore the psychology of overspending.
Temptation is everywhere. For many shoppers, it’s not about the discounts and deals. Overspending shopping is a coping mechanism. Your overspending habits could be a reflection of your experiences, emotions- your psychological makeup. It’s a way to escape some sort of pain, or to fulfill some other underlying need. Maybe it’s depression, perhaps you’re buying confidence!?! Some people have shoes they want to collect, just for the sake of collecting.
To keep from overspending, experts say you have to understand your limits and don’t ignore them. When you do charge something at a store, say its 100 dollars, go ahead and write in your checkbook a deduction for that 100 dollars. That way when your credit card comes, the money has already been spent.
Try leaving all of your credit cards at home and go shopping the old fashion way, with cash. when you see your money physically disappearing, you’re less likely to overspend. Try following the ten minute rule- the urge to purchase will probably pass.
There are value in having things, absolutely, but you want to do it in a way that you can afford, that makes you feel good, and that is in balance with your other values, so that you are not living for your stuff.