The Psychology of Overspending
As a practicing financial advisor, before I take a detailed look through a person’s budget, spending habits, and bills, I start by getting to know the person and their relationship with money. The reason is, until we can change a person’s habits and how they view money, we’ll always be fighting an uphill battle when it comes to controlling their urge to spend money on something that’s not truly necessary, just to get that endorphin-filled wave of happiness that people can get when they buy something.
When you look at your current relationship with money, I ask you: is it a positive or negative relationship?
If money is often the cause of stress and anxiety, or you are always feeling limited in what you can do or experience in life because of a lack of money, that’s a negative relationship with money – and your money problems probably start there. On the other hand, if you view money as a tool to help get you closer to the quality of life you desire and don’t allow money to sway your emotions negatively, you’re on track to having a positive relationship with money.
With that said, it’s important to take time to self-assess your relationship with money. The goal is to intentionally create a new outlook that allows you to be optimistic about your ability to manage money, so that you can eventually live your life the way you want and still save.