Wondering what are the psychological reasons for overspending? Overspending implies that living is more or beyond our needs. Basically, many of us have more debts than saving why? Literally, it’s because of spending or overspending money.
When we always come to the moment of feeling down what we do is to buy ourselves some things that can make us feel better.
Most of the time we love to do shopping even we don’t have money and we don’t really need those things we buy, what important are we feel better and happy. Although, it’s only temporary happiness, yes, we feel happy and better than dealing with our problems all of the time.
Overspending can lead us to have obsessions in shopping and it will be a full-blown addiction and this addiction can lead us to money problems that we don’t like to happen. So, how do you handle the urge to go shopping? How do you stop overspending?
Here, I will share some of the psychological reasons why we do overspend and how to avoid it. At the end of this article is the answer to what is overspending and the tips on how to stop overspending. So, without getting a bush, let’s get started.
6 Psychological Reasons for Overspending
Shopping and Emotional Therapy
This is the first reason why you do overspend and based on the research people have limited reserves of wheel power, as we all know every day in our life, we have a lot of challenges dealing with such as in our work, family, and relationship. The tendency is our reserve wheel power exhaust lessen, so what will happen is we got stress, anxiety, and worried. When the wheel power exhausted, we can’t think properly which causes you to act impulsively.
Basically, if you feel stressed what you will do is to buy things that will make you happy which can lead to overspending. Most of the time you will buy those things because you are exhausted and you can’t decide properly.
How you can avoid it? If you are depressed don’t do shopping, don’t go to the mall just stay at home, you can read books, listen to the radio or watch tv, by doing that you can avoid overspending your money.
Social Pressure or Social Media Hype
This is another reason why we do overspend. Being affected is normal in many people. Most of us usually buy things unplanned, sometimes we just brought it because it is popular, social media hype or because we have an emotional problem that we want to rid of.
When malls or online shop use the sense of scarcity to do sell, they will use time constrains to provoked the consumers in the fear of missing out, they will use words like the limited offer, 50% off until 12 midnight only, 2 stocks left which can provoked to us to panicked buying or hoarding. If you will be aware of those pressures you can avoid doing overspending and you will think wisely if what is your perspective and which side will you choose is it on many people do or the side that you will save for your future?.
Avoid emotional or impulsive buying and if you do it continuously, it will be your habit to learn to wait for the 30 days which becomes a chance that you will realize if you still want to buy that something or not.
This is the most major reason why we do overspending, you cannot immediately feel the pain when you are using credit cards for your payments and bills, whether on the mall or online store when you use the credit card on the wrong way the tendency is you are spending money that you don’t hold too. You already borrowed your salary and you think you have a lot of money but the truth is the money is not yet on your hand. A credit card gives you the freedom to spend as much as you want because it is very easy to swipe especially if you get rid of social media pressures like buy now, pay later and zero percent interest. The credit card will ease the pain of paying which can result in overspending.
Don’t bring your credit card if you are doing window shopping it will be better if you will use cash if you go shopping, so you can be sensitive in how much you are spending. For sure you will spend money on the items that you really want.
This is another reason why you overspend, because sometimes if you buy something on sale you thought you save big but the truth is you spend money.
You can avoid it if you ask yourself first before you buy it. Just think if you already need that or do you have a budget for that. Be calm before you buy something.
Another main reason why people do overspend is when they are triggered by their lifestyle over the indulgence while doing overspend shopping. They indulge themselves in all other stuff.
This is another reason why we do overspend because most of us get indulged in spending money when we see someone, usually, you tend to compete with others, you will buy things that you don’t really need just for you to see yourself look ‘’in”, and if you are getting into your emotion you will have a big problems in money.
You don’t need to do this thing just to get any attention. So, avoid the jealousness or insecurity that might cause you overspending money.
Hunger Reward Discounting
This is another reason why we do overspend, people who have the willingness to hold or paused and considered the risks versus the rewards of spending their decisions tend them in having better spending habits.
Those people who are impulsive and cannot pause to wait for their achievements or rewards in the future can be obtained without such consequences, overdrawn accounts, penalties, and credit card interest tend to get drawn into an unlucky and very costly cycle of overspending money.
What is overspending?
Overspending implies that you are living beyond or more than our needs; it is an emotional behavior or desire in buying something and spend more money that we don’t expect. Usually, overspending is a way on how your reactions, emotions, and feelings can control your mind is able to stop you from overspending.
15 Tips on How Can You Stop Overspending
Have a specific goal
If you have any specific goal like buying a new laptop for your work and saving money for your travel goals will be a great tip that can help you overspending your money.
Have a budget plan
Budget planning and having a spending planning is a great combination of creating a foundation in avoiding overspending, budgeting will be a very easy way on how to stop overspending.
Consolidate if what are the wants and needs.
It will always be a good idea to consolidate wants and needs when it comes to buying something. This tip will teach you to separate the wants from your needs. Wants and needs are your fighting spirit are able to avoid overspending.
Control spending and figure out your priorities
The good thing about controlling spending is that we have full access to our money, we can control when or how we can spend it if you will know to figure out your priorities and control your spending habits will be a very helpful way to avoid overspending.
Avoid or Subscribe to online stores.
If you avoid social media and social stores you will also avoid the temptation in purchasing those things that they advertise, a great way on how you will avoid buying those stuff that will cause you overspending.
Change your catch-up moments with friends.
Chose to change your catch-up moments with friends because usually you spend more time with them and because of that it will also the way to spend more money with them. Try to invite them to your house, cook for them and watch a movie marathon with them is a practical way that you can save and not overspend your money.
Browse your closet before you buy something.
Before you bought or purchase something think about browsing your closet if you see some clothes that you mostly don’t use on daily basis meaning you have a lot of clothes and it’s not yet the right time to buy a new one.
Do the NO Rule.
If you can do the no rule to your friends or family member especially to the items that you want to buy will give you a way of freedom to do overspending. One reason we do overspending is when you can’t say no to a person especially if they invited you to go hang out with them.
Have a money account goal.
This will be the very best way to avoiding overspending money because you will make sure that you have money on your savings account. Who wouldn’t like that?
Put hold and pause item buying.
Putting a hold on a thing that you like will give you more emotional consciousness is able to not buy that item. It will also give you some patience that you need in able to wait until the time that you can already buy it.
Do not go to stores without a plan.
Going on a mall without plans will lead you to overspend so you make sure that every time you go to the mall or the store you have listed on your hand prioritizing what you need than your luxury things. Do not buy anything and regret it afterward. This tip will also help you less hassle as you don’t need to go back when you forget something.
Avoid riding a cab and start walking.
The cab is expensive, most of the time it will costs you too much but if you will start walking when you go to work or school it will save you more money.
Do not eat too expensive restaurants
Why eat at restaurants if you can cook at home? Be practical, It will always be better if you will just be cooked at home than eat at the restaurants. You can save more than spend more just on food. Yes, food is part of your needs but you don’t need to fulfill your hunger in eating to the restaurants. After all, the food at home is still the best!
Make a money organizer.
Having a money organizer will help you separate your bills, needs, and wants which can help you identify what are those things you need to pay, things you need to keep and things you need to buy.
Shopping is addicting, this can be having devastating consequences. Although, just like other addictions it can be treated.
Shopping is not bad especially if you work really hard to earn that money and sometimes you will feel the need of rewarding yourself because it is a fruit of your labor.
However, there are those things that we need to sacrifice in order to see our needs. We all know that It’s too difficult when you don’t have money, and like me, for sure you don’t also want that to happen.
Many of us have a spending problem because we spent too much on a lot of things, we always make mistakes when it comes to handling our money.
Remember we buy things because we want to feel better and guess what you have access to the full spectrum of human emotion every single day and a single moment of your life, buying something is not necessarily always the path to sustainable joy.
People who spend money and live their financial lives consciously with their eyes wide open will have a beautiful presence and beautiful financial future
Now, I challenge you, if you want to buy something on this day try to practice yourself to stop overspending on the things you don’t need.