When it comes to shopping, most of us spend too much. This is provoked by advertising and emotions. People easily open wallets, lose money and regret behavior. A 2017 U.S. study says spending money on insignificant things is a key financial mistake for most.
The tendency to overspending is a consequence of the development of marketing. We become betrayed by our own brains. This he first pushes to additional costs, and then reproaches in weak will. Fortunately, thoughts that encourage wastefulness can be recognized, which will allow you to spend less money..
1. “I need it now”
It’s hard to spend less and be reasonable in times of fast deals and two-day delivery. But failure to do so is not always our fault. The organizers of a study at Princeton University found that abandoning instant pleasure is biologically more difficult. Our brains vote for positive emotions when we face the challenge of choosing to get something now or in the future.
“David Labson, a Harvard economics professor, says:“ The emotional part of the brain is more complex in the future, even though the logical part clearly sees the consequences. The emotional part of the brain pushes to empty the map, order dessert, smoke a cigarette, a glass in a bar with a friend. The logical part knows what to save for retirement, save money, give up junk food and quit smoking. ”.
According to Dave Ramsey, before you click on the Add to Cart button, you need to think about the future. Estimate how important this subject will be in a month. In most cases, you will want to refuse the order. What if the item still seems necessary? Wait a little longer with the decision.
2. “I will feel better”
Shopping therapy works. As a result of the Psychology Today study, it was found that for 62% of people, buying is a way to raise their spirits and improve their mood. And a third (28%) of buyers consider them as a celebration.
If you do not want to spend a lot – set limits. Pay attention to the budget rule 50-30-20 proposed by Elizabeth Warren. This means that you spend 30% of the money on shopping, dining and entertainment. This amount will satisfy the needs without negatively affecting debts, housing payments and savings.
3. “I can spend more with a credit card”
People spend more with a credit card. This is a proven pattern associated with cognitive bias. We are more impressed by the gains and losses that occur in the present than in the future. When a cashier makes a payment by credit card, the brain does not immediately understand the fact of losing money.
Carry cash. A person who pays with living money is better aware of the fact of parting with them. A credit card allows you to put off this feeling. And the disappointment with the need for repayment cannot be avoided..
4. “Small purchases are not dangerous”
When you see the opportunity to buy a T-shirt for 500 rubles or want to drink a cup of coffee for 250 rubles, try to understand how such a waste will affect your future well-being.
Stick to a budget that distinguishes between real needs and desires. Can’t refuse small purchases? Allocate for them a special part of the budget. This will not save from useless expenses, but will allow you to keep yourself in check and spend less.
5. “I have a salary in the coming days”
You have learned that the emotional part of the brain can deceive, and try not to give in to it. But she is trying to rationalize the purchase, saying that the next salary is around the corner. Yes, you will not have problems with money, but this does not mean that you need to clean your pockets. There are many other articles that are prioritized conditional “new shoes”.
Understand important expenses initially. Pay yourself, save money in a savings account, get rid of debts, and do not fall into the trap of “life from paycheck to paycheck”.
6. “I can always get it back”
Practice says that most likely not. This is due to the theory of the absolute level: people who have a limited time to complete a business will postpone it until the problem becomes burning. Therefore, if the store gives 30, 60 or 90 days for the return of goods, it is likely that you will postpone it to the last moment and skip it.
Be decisive in shopping. If in doubt, then you do not need such an acquisition. Track the experience: if you forgot about the purchase after a week, probably it was not your priority.
7. “I feel it makes me stronger”
Want to become a style icon or flaunt your financial status? So do many. It seems to people that the opportunity to spend is a sign of strength and control. Sometimes such a desire arises among those who live in the role of the breadwinner of the family. It is important for them that others recognize this position. In other cases, this approach is a manifestation of masculinity. Daniel Krueger came to these conclusions thanks to a 2008 study. He found that among male participants between the ages of 18 and 45, those who are prone to spending have more sexual partners.
Remember that constant cost overrun is the road to a debt hole, in which it is even more difficult to seem strong and successful. There are other ways to feel and demonstrate your status: improve your posture, broaden your horizons, think positively, monitor your appearance.
8. “I digress from accounts, debts and other life concerns”
Trying to escape from stress and create conditions that are less reminiscent of it is typical for many people. Constant stress, many accounts, illegibility in financial problems. Buying new things or spending on entertainment is becoming a positive distraction. But it is effective until you return to the voltage source again..
Track your expenses so that you can actually see where the money goes until the last ruble. This will help not only reduce costs and improve the situation, but also reduce emotional costs..
9. “I will look cooler”
In a world where acquaintances flaunt things, accomplishments, and entertainment on Instagram every day, it’s hard to avoid pressure. A recent CNBC study found that 90% of millennials believe that social networks are constantly comparing personal well-being and lifestyle with peers. ”.
Use social networks sparingly and look for ways to increase self-esteem that are not related to them. Your 500 acquaintances are not required to know everything about your life.
10. “Everything is in order – I have a day off”
With the advent of weekend spending increases. There is a desire to have a good time and derive imaginary benefits from sales, promotions, discounts, etc. True, there is no benefit, and the mood deteriorates when you have to face the consequences of excessive costs.
Stick to a budget that tells you how to spend less, despite the holidays and weekends. This does not mean that you must stop going to the movies and not give gifts to loved ones. Try to calculate expenses and get ready for important days in advance.
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One possible question for the reader could be: “Can you provide tips or techniques to spend less and avoid succumbing to the impulses that our brain often leads us to follow when it comes to spending money?”