Solutions for the Chronic OverspenderSubmitted by BCR Wealth Strategies on September 4th, 2018
I’m sure we’ve all given in to the urge to splurge at some point, and most of us have probably suffered the consequences later when our credit card statement arrives. Overspending can derail our monthly budget and put us on the fast-track to being in debt. However, psychologists say there are effective ways to fight this urge.
The first point to understand is that buying things is a way to boost our self-esteem and make us feel better in the moment. Purchasing a new pair of shoes or a new set of golf clubs can provide instant, although often fleeting, gratification. Before making a purchase, create some space between an impulsive reaction and the action itself. Ask yourself how you’re feeling. Sad? Bored? Frustrated with someone? Determine whether the item will bring you lasting joy or if it’s just a way to assuage your feelings at the moment.
Once you understand where your urge is coming from, ask yourself the following practical questions. Do I really need this item? Do I even have a place to put it? Will I still care about this item a week from now? Implement the 24-hour rule. If there’s no harm in waiting, then put the item back on the shelf and revisit the idea the next day to make sure you would be buying for the right reasons.
Lastly, if you’ve deemed the item worthy, make sure you have an appropriate way to pay for it. Is it covered in your monthly budget? If not, can it be paid for with savings, or will you have to go into debt to get it?
These simple tips won’t cure the urges for the chronic overspender, but it might cure the destructive consequences of them.
Some of the material above was prepared by Bob Veres Inside Information.