Category: | Personal Finance

Understanding Why You Spend

We all have reasons why we spend and aside from the necessities in life many of us love to spend for various different emotional reasons.

Just as some people ‘reward’ themselves or find comfort in chocolate there are many more who spend money in response to certain emotions.

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?

Many people buy material items in an attempt to make them feel better about themselves.

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.

Some people buy when they are happy and some people buy when they are sad.

Many people these days buy 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. 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 define precisely why you buy then 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 outweighed many times over by the stress and worry of the financial burden that they bring with them.

It might even be necessary to see a professional for consultation to help you change these bad habits that are getting you into financial strife on a regular basis.

More often than not they are just bad habits and we are unaware of what we do a lot of the time.

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