Spending can be addictive – it can start off as harmless but quickly build before you even realize it. The reasons for spending beyond your control can be varied, and it takes analysis, observation and self-reflection to get to the root of your spending issues. It’s an important task to undertake, particularly if your spending is prohibiting your saving when it comes to your retirement.
Here’s a few reasons you may be slipping into overspending.
Ignorance
For many people, they’re just ignorant to their overspending. This doesn’t mean that they’re an ignorant person, but that they just have their head in the sand when it comes to their own finances. It could also be that one spouse or partner is unaware of the spending and saving within their household.
In this situation, the way to solve it is to jump in and create an open dialogue about your finances – either with yourself or within your family. Many of us are raised to believe that financial topics are taboo, so we naturally avoid discussing money, but you need to be aware of how much money is coming into your account and going out so you understand your financial picture. If you’re having difficulty with this, that’s ok. Bringing in a professional such as a financial advisor can help you get through this not only to become more comfortable but to work on your spending habits.
Addiction
Another category of people fall into the group of people that are truly spending addicts. Shopping can create the same release of endorphins and dopamine that other addictions create, and it can be a difficult cycle to break. This cycle can ultimately end in financial ruin not only for individuals but for families.
Fixing this can be a difficult task, and often requires professional help from support groups or psychologists so that you can get help with the root cause of your addictive behavior. Trying to adhere to a budget may help, or journaling your spending – but you may want to substitute your addictive spending by trying to gamify saving instead. See how quickly you can save money instead of spending it to see if it helps create the same dopamine response.
Filling The Void
For another group of people, they spend money simply to fill a void within their lives. Spending may help them to deal with negative feelings or be a form of escapism. Shopping may be their vice instead of drinking or gambling.
When you spend money to deal with negative feelings, you may need to find an alterative way to deal with you feelings. The extent of your shopping and spending issues may determine how much help you need in this area. If you slightly overspend, you might try substituting other behaviors such as journaling or meditation. If you are turning to shopping constantly, you may need to address your feelings at a deeper level with professional help, or find long term distractions that take up more of your time, such as volunteering or a new hobby.
Regardless of the cause of your overspending, it’s important to get to the root of it so that you can course correct and appropriately save for your future, because you’re worth it.
Read the full article here
