subject: Reasons Why We Waste Money [print this page] Reasons Why We Waste Money Reasons Why We Waste Money
We've heard over and over that we spend too much money. We don't save enough money. But why?
1. People make excuses. Do any of these sound familiar?
* I've never been good with money.
* Financial information is too complicated for me to understand.
* I'm bad with numbers.
* I'll never be rich.
2. We rationalize spending. "I work very hard. I deserve expensive vacations, several pricey designer clothing, and dining at gourmet restaurants every week. " It's the "life is usually short" syndrome. Life won't feel so short if you're 85 and still working to pay your bills. Sometimes you convince yourself you will be making the right decision to protect your ego. If, however, you're responsible with your money quite often, you can splurge once in a while. This helps to create balance that you saw.
3. We don't want to be thought of as cheap. We perceive that others may judge us by what we have, or may think less of us when we spend our profit conservatively. Improving your self-esteem should not be an excuse for buying items. The momentary "high" you get from making a purchase fades quickly when the user gets the credit card bill in the mail and you do not need enough money to pay the idea.
4. We think it takes too much time and effort to be smart with our money. Actually, once you develop good habits and reinforce these, they will take less time and energy, and will be easier to maintain.
5. We're afraid that we may sound foolish if we ask a question. If you don't require clarification about a charge or maybe a bill, you won't know whether it's a mistake that should be corrected so the money may be returned to your pocket. In addition, if you don't ask to get a discount, you won't know if you possibly can get one. Don't be embarrassed to ask, "Is a discount readily available this item or service? " If you can not ask questions you won't become smarter about your cash.
6. We love instant satisfaction. Why wait when we can have it right now? We give ourselves permission to run wild and make purchases without thinking them through.
7. People fall for sob stories and let emotions control our behavior. Boyfriends, girlfriends, co-workers, friends, and our children beg us to help these by lending them or providing them with money. Beware! Personal loans often turn into losses (uncollected debts). Sob stories can represent a red flag warning that you run, not walk, away from! It's harder to say no when your children (including adult children) ask you for the money. You don't want to enable more bad money behavior by giving or lending them money right after they don't have enough of their own saved. Tough love is hard, but necessary. You may wish to read this paragraph again.
8. We're in denial precisely how much we spend. Ignorance is not bliss. Often, we're in a really rush that we don't know what we spend our money on, or how much we invest. We confuse needs with wants. "I'll buy this now and figure out how to pay for it later (or not). " Try writing down everything you purchase for a week or two. This may help shock people into reality. "Make the pen your friend before you spend. "
9. We think that shopping is a hobby. Even though it makes us feel better, shopping shouldn't be used for an excuse to get together with friends.
10. We trust most people too easily. Proceed with warning when solicitors, salespeople, and self-proclaimed experts try to persuade you to buy an issue, to donate money, or "to get rich quick. " Remember that old adage, "If it's too good to remain true, it usually is. " Some may intentionally want to scam you. Others, who are just trying to earn a living, may persuade you to make decisions which were not in your best interest.
11. We procrastinate. Putting off financial responsibilities often results in rushed decisions or missed deadlines. Costly choices we regret, late charges, penalties and missed opportunities all represent the price you can pay by not tackling money responsibilities before its due.
12. We don't plan ahead. At first glance, you may think that this reason is related to the previous one. Although they both have to do with time, procrastination relates to putting something off, or a delay. Not planning ahead also affects your future, but usually more inside medium to long term. In many cases, we forget to stop and take into account the impact a decision today will have when you need it. Not setting financial goals and making plans to obtain them can have severe consequences. More specifically, if you don't arrange for financial emergencies, although they might happen to everyone at some point, guess what? You may be forced to do things you'd rather not do.
