Updated: August 29, 2020
There’s nothing wrong with spending money on things that will make our life easier, better… happier.
What’s actually wrong is spending money on things that you cannot really afford.
So instead of having an easier, better, and happier life, you end up wallowing in misery over a huge amount of debt from your overspending.
Fortunately, it’s never too late to change.
And the first step is to identify your spending triggers and address the root cause of your bad financial habit.
Five Types of Habitual Overspenders and How To Address Them
People who shop when they’re depressed.
Shopping helps them feel better, at the expense of their budget. If you’re this person, avoid retail therapy and instead talk with a friend or someone you trust about your emotional issues. Sometimes, doing volunteer or charity work helps too.
People who get a “high” when they’re shopping.
They believe that shopping is their only source of joy. If you’re this person, find and discover the other things that bring happiness to life. You can start a personal project that requires creativity. Or exercise, this works most of the time, plus it’s healthy too.
People who spend too much on little things and then wonder why they’re broke.
First of all, stop using your credit cards and start paying only in cash. More importantly, keep a small notebook, or use your smartphone to track all your spending so you can pinpoint your impulse buys and avoid them next time.
People who spend more than usual when they’re with friends.
If you’re a social spender, then you should realize that the reason why you’re going out is to spend some quality time with your friends and not spend money you don’t have. Remember that true friends will not judge you on how much money you have in your wallet.
People who buy things just because it’s “On Sale”
If you don’t need it, don’t buy it. When the time comes that you actually need it, trust me when I say that it will be “On Sale” somewhere. Remember that shopping malls regularly hold a sale every payday, so don’t be fooled by this marketing tactic.
Are you a habitual overspender? If so, which one are you? Confessions are welcome in the responses section below.