What motivates you to spend money? Most people never take the time to consider this question, but understanding the reasons why you spend money can go a long way to help you get your finances under control. Here are 15 common reasons people use as an excuse to spend money:
You Think It’ll Buy Your Happiness: Many people believe that by buying products and services, they will make their life happier. It’s an easy trap to fall into since this is exactly what commercials want you to think. Unfortunately, spending money does not usually bring happiness except possibly for a short period of time which means that you have to go and spend even more money to in an attempt to get the same feeling again.
You Lack Patience: If you don’t have the patience to wait until you have enough money to purchase something, then you get into the habit of putting it on your credit card and having a balance that is not paid in full at the end of each month. This greatly increases the cost of the items that you purchase and it’s why many people have credit card debt.
Your Feel Guilty: Many people try to assuage their guilt by making up for it by purchasing material things even though they know that this will not completely solve the problem of the guilt. Kids (and sometimes significant others) can also very good at manipulating guilt to get the things that they want. If you let your guilt dictate what you purchase, you can find yourself with e a large money problem.
You Think It Will Buy You Love: Some people believe that they can buy love with the things that they purchase. There is a lot of advertising out there that encourages you to believe this. This often means that people spend more than they should in an attempt to show their love.
You’re Trying To Keep Up With The Joneses: If you are trying to keep up with the Joneses, you’re likely spending a lot of money on things that you don’t really need. The worst part is, the Joneses are doing the exact same thing in an attempt to keep up with you.
You Can’t Say “No”: Some people find it impossible to say “no” even when it’s the right thing to do. Whether it’s the kids who want the latest fashion, a spouse that wants the latest gadget or a friend that wants to borrow money, you simply can’t say “no” to their requests. The problem is, there are many times when “no” is the correct answer.
You’re Ashamed: Sometimes people spend money out of shame. If your friends invite you out to lunch on a regular basis, you might accept even if you don’t have the money to go out and eat. The shame keeps you from telling the truth which leads you to spend.
You’re Lazy: Sometimes people spend more than they need to simply because they are lazy. Instead of doing thorough research and buying the things that they really need, they just buy whatever they think they will need at that particular moment because they’re too lazy to do the proper research.
You Believe It’s Temporary: Some people convince themselves that the current money situation is only temporary. They believe that they will have more money in the near future and that they can use that money to pay off any debt they may have accumulated. The problem is that there is no guarantee that their future plans will come true and even if they do, they may just increase their spending adopting the same attitude.
You Don’t Consider Your Credit Card Real: Some people have a difficult time viewing credit cards as real money. Because they can’t see the actual money in their hands, it doesn’t seem real to them and therefore makes it much easier for them to spend.
Your Try To Maintain Your Previous Lifestyle: Sometimes finances change and you are forced to live on less money than you were previously used to living on. An example might be a bankruptcy. If you try to maintain your previous lifestyle on a lesser income, you’re bound to run into financial problems.
Your Feel Entitled: Some people feel that they are entitled to spend because of past situations that they have had. Even though they don’t have the money to spend, they feel that other circumstances give them the right to spend.
You Lack Financial Knowledge: Many times the main problem is that people just don’t have the financial knowledge to understand that the way that they purchase products and services can cause a lot of financial hardship if not done properly. They may not understand that buying things on their credit card without paying it off in full each month will mean that they will have to pay significantly more for that same product than if they paid for in cash.
You Feel Powerful: For some people the act of spending money makes them feel powerful. This sense of power keeps them going back to purchase things even when they may not have the money to actually spend.
You Feel More Worthy: Some people find their self worth in the things that they buy. They feel that if they have nice things around them, then they are a better person. Since the relate what they have to what they are worth, they sometimes spend even when they don’t have the resources to do so.
These are just some of the more common ways that people convince themselves it is okay to spend money. Most people probably exhibited a combination of these reasons. By understanding what things motivate you to spend, you can begin to take steps to discourage yourself from doing so when it’s not appropriate.