This is a collaborative post by Ellie Jo about consumer’s spending habits.
Is there a more common complaint than ones related to money? It’s something that most people can relate to — indeed, virtually everyone except for the rich and famous. But what is about money that causes so many problems? Why is it such a prevalent issue? It’s mostly because people spend more money than they’d like to. If they were able to get this aspect of their financial life under control, then their money situation would look a lot rosier. Below, we take a look at a few common explanations for why people spend more than they’d like.
Why People Spend More Than They’d Like To
They Don’t Know What They’re Spending Money On
The more you know, the better. This is true for virtually everything, including your finances. If you don’t know where your money is going, then you’ll be liable to spend more than you had planned — because you don’t know the damage that you’re doing. As a little exercise, look at keeping tabs of what you spend your money on for the next week. When it comes to the end of the week, you might just be surprised at how much you’ve spent. We tend to dismiss those small expenses, such as a daily coffee, as having minimal impact. But they all quickly add up — and you may be surprised at just how much you’re spending each week, money, and year on things that really aren’t necessary.
They Don’t Use Discounts
Some people try to freeze their spending altogether when they’re trying to save money, but this isn’t a realistic goal — we all have to buy things from time to time, after all. But it’s not like it’s all or nothing. There are in-between spaces, too, that allows you to get the items you need and avoid blowing a hole in your bank balance. It’s all about discounts. There’s rarely a need to spend full price when there are discounts available. There are websites that offer a macys coupon, among other stores, and it’s always worth keeping in mind that most shops have regular sales, too. Make the most of these options, rather than paying full price, and you’ll notice a reduction in the amount of money that you spend.
The Replace, Rather Than Fix
Before you buy a new item, it’s worth checking that you really do need to make a purchase. It won’t always be the case. If you’re buying something just because you need to replace a broken product, then, big news: you can probably fix it. Don’t throw away a shirt just because it has a hole in it; mend it! And it’s especially true for tech items. The majority of “broken” tech hardware isn’t broken at all. Fix it, and save yourself the cost of a replacement.
They Let Other People Spend It For Them
Finally, don’t let other people spend your money for you. They might want you to attend their overseas wedding or their luxury birthday party, but if it’s going to drain your finances, then you’re within your rights to say no.
Greg is a Chartered Financial Analyst (CFA) with 22+ years experience in Financial Services. He has held numerous FINRA Securities licenses (series 7, 63, 65, and 66), and is an expert on Investment Products and Financial Planning. Greg has 22+ years experience as a real estate investor and degrees in Psychology and Philosophy.
Greg has been quoted/interviewed in Yahoo Money, Yahoo Finance, USA Today, Authority Magazine, Realtor.com, Business Insider, and others.
Greg is an avid runner, and the father to identical twin girls and their awesome brother. His love of budgeting and his kids led him to join The Great Resignation in 2021.
Disclaimer: Any Financial Tips on ChaChingQueen are general and informational. Speak with a professional about your specific situation.