Why is it so Hard to Change Spending Habits
So many times people get into a financial rut because they repeat the same bad spending habits over and over. Whether it is impulse buying at the mall or wondering onto a car lot and ending up with a new car, people tend to be creatures of habit.
If we look at what goes into a purchase decision, it may explain why this phenomenon occurs so often. There are two main reasons why you purchase an item - out of need and out of want. In the majority of situations where we overspend, it is because we want something rather than we need something.
What makes us want an item so bad? Some of the reason is effective marketing by advertising agencies. Retail stores spend a lot of money doing studies on what sells and what does not sell. Most items are placed strategically to make you notice them and also want them. Case in point, how many times have you walked into Wal-Mart to get a specific item or items and left with something else in addition to what you came in the store to get?
Another huge reason why we want particular possessions dates back to the beginning of time - and that is envy. We know someone like a neighbor or friend who has something and all of a sudden we want it too. Perhaps a friend bought a boat and although you had never really thought about it, now you want a boat too, it might be fun. Or perhaps a work colleague moves into a new house in a nicer neighborhood and you start to realize that maybe you should move too, even thought you were perfectly happy in your house until this happened.
In order to change your spending habits there are 2 basic strategies to employ. First, if you are a habitual spender or impulse buyer, do not put yourself in a situation where you will be tempted. It is really no different than an alcoholic who stops going to a bar. If you remove yourself from the situation, then the temptation is lessened. For example, if you love cars but know you can easily be convinced to buy one, do not set foot on a new car lot. Or go on Sunday or after hours where you will not be tempted by a salesperson.
The second strategy is learning to be satisfied with what you have. We will always have a friend who makes more money than us or a work colleague who has something we want. However, there is also a very good chance that you have something that person may want too. It can be very difficult, but you have to be appreciative for the blessings in your life. Life is not a contest. For example, when you die will it really matter what type of car you drove? I hardly believe that anyone will judge you for that. So rather than drive that fancy car, why not take your family on a family vacation? Those are the things you will be remembered for and loved.
So many times people get into a financial rut because they repeat the same bad spending habits over and over. Whether it is impulse buying at the mall or wondering onto a car lot and ending up with a new car, people tend to be creatures of habit.
If we look at what goes into a purchase decision, it may explain why this phenomenon occurs so often. There are two main reasons why you purchase an item - out of need and out of want. In the majority of situations where we overspend, it is because we want something rather than we need something.
What makes us want an item so bad? Some of the reason is effective marketing by advertising agencies. Retail stores spend a lot of money doing studies on what sells and what does not sell. Most items are placed strategically to make you notice them and also want them. Case in point, how many times have you walked into Wal-Mart to get a specific item or items and left with something else in addition to what you came in the store to get?
Another huge reason why we want particular possessions dates back to the beginning of time - and that is envy. We know someone like a neighbor or friend who has something and all of a sudden we want it too. Perhaps a friend bought a boat and although you had never really thought about it, now you want a boat too, it might be fun. Or perhaps a work colleague moves into a new house in a nicer neighborhood and you start to realize that maybe you should move too, even thought you were perfectly happy in your house until this happened.
In order to change your spending habits there are 2 basic strategies to employ. First, if you are a habitual spender or impulse buyer, do not put yourself in a situation where you will be tempted. It is really no different than an alcoholic who stops going to a bar. If you remove yourself from the situation, then the temptation is lessened. For example, if you love cars but know you can easily be convinced to buy one, do not set foot on a new car lot. Or go on Sunday or after hours where you will not be tempted by a salesperson.
The second strategy is learning to be satisfied with what you have. We will always have a friend who makes more money than us or a work colleague who has something we want. However, there is also a very good chance that you have something that person may want too. It can be very difficult, but you have to be appreciative for the blessings in your life. Life is not a contest. For example, when you die will it really matter what type of car you drove? I hardly believe that anyone will judge you for that. So rather than drive that fancy car, why not take your family on a family vacation? Those are the things you will be remembered for and loved.