The holidays are approaching, and you know what that means: it is time to start thinking about ways to show your friends and family how much they mean to you. It is also a great opportunity for you to spend money on them. And if they are anything like me, they will totally be expecting it and will have no idea why I’m giving them gift cards or new sweaters when what they really wanted was cash.
We all have a tendency to overspend. And in today’s digital world, with access to online shopping 24/7, this issue can become even more difficult. Online stores make it so easy for us to buy what we want and forget about the consequences of our decisions.
Today psychologists have done much research and one of the psychologists Brad Klontz, managing principal of Your Mental Wealth Advisors says, “Emotionally charged circumstances make us prone to overspending”. So let’s examine a few of the triggers that push us to overspend our money.
5 Reasons Why You Overspend
THE TRIGGER: AN UNHAPPY MOOD
Researchers suggest that some people spend money on shopping as they feel happy and the research had shown an increase in the endorphins hormone. Therefore, the person ends up spending money on items that are non-essential to his or her needs.
THE TRIGGER: YOU ARE ON VACATION
Being on holiday gives you a license to relax — physically, mentally, and financially – and it is easy to get carried away with that feeling to overspend. When You are on a trip, you feel like you are on a holiday from real life so you aren’t as practical about finances as usual. Add to that the fact that You are surrounded by overpriced tourist traps, and you have the makings of the perfect, budget-sabotaging purchases.
THE TRIGGER: YOU FOUND AN AMAZING SALE
it is such a thrill to score the AED400 pair of strappy sandals on markdown for just AED300. Knowing that other people paid full price for something you could score for a fraction of the cost makes it hard not to want to splurge.
THE TRIGGER: YOU ARE OUT WITH FRIENDS
Even though You are no longer in high school, it can still be hard to resist peer pressure. Fear of being kicked out of the herd is still part of our instinct today. When your friends are ordering AED 100 on drinks and food, it is natural to want in on that.
THE TRIGGER: YOU HAVE TO BUY A WEDDING GIFT
The external pressure of the norms of the society of getting present and having the feeling of inferior complexity of not getting the right gift will make you feel not good, pushing you to overspend.
How can you stop Overspending?
To stop and shut down these triggers then you should know that you need to be extra careful that whenever you are in these situations, then you will control your emotions and avoid overspending the money.