We all have reasons why we spend money on things outside of the regular bills. So many of us love to spend for various different emotional reasons. We want, want, want. Here is a helpful post on deciphering wants vs. needs. Some people ‘reward’ themselves or find comfort in chocolate. Some people reward themselves by spending money on things. Are there occasions in your life when something has happened where you immediately feel like you need to go out and celebrate by either buying something or having a meal at an expensive restaurant? I KNOW I DO! My brain screams “chocolate” or “new pair of jeans”!
Why we spend money?
We spend money because we think it will make us feel better. Chances are that after reality sets in that you will feel worse. And that feeling gets compounded because that debt you incurred will stick with you until you can pay it off so it is a reminder nipping at your heels for a long time. Ask me how I know! Do you have any experience with buyer’s remorse?
It is not uncommon for people with low self-esteem to spend money on items that they think will give others a higher opinion of them. People buy expensive cars or yachts to boost their ego. But it’s not only people with low self-esteem who spend willy-nilly. Some of us spend when we are happy and some of us spend when we are sad. Some of us just spend no matter the mood.
Many people spend with no thought about the future and the fact that they are going to have to pay off the debt that they have just incurred today for the next year or so. This is what happened to me with for many, many years. I thought that my credit card was just money. I mean, I knew I would have to pay it off, but having debt was just “a fact of life”. And then I grew up and realized that OMG debt should not be a fact of life. Outside of maybe a house and the family vehicles. All of a sudden, I figured out that I had so.much.debt that it felt like I was just have debt forever.
Impulse buying can be particularly dangerous as it is generally for items that you don’t need. And the debt that comes with these types of purchases is something that you definitely don’t need and will possibly regret for a long time. If you can pinpoint why you spend money willy-nilly you will be in a lot more control over your financial future, and you will understand that the short term benefits that you get from your buying sprees are certainly NOT outweighed many times over by the stress and worry of the financial burden that they bring with them.
Spending money emotionally costs a lot more than you gain. It just isn’t worth it. In the end, you get nothing out of it but a mountain of debt. Spending money you don’t have and can’t pay back will also affect your credit score and that tags along with you for at least seven years. Spend wisely.
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Disclaimer: I am not a financial professional and don’t play one on tv. The information provided on Single Mom on a Budget.com is my own opinion and should not be construed as fact or advice, and you follow it at your own risk. You are responsible for your own personal finances and should not rely on this site to make the final decision for you. This blog is my means of communicating my experiences to you and to prompt you to think and consider your own situation, but you are 100% responsible for any actions you take. Always consult an attorney or tax professional regarding your specific legal or tax situation.