Monday, June 4, 2012

What Factors Cause us to Overspend?

In spite of knowing the fact that debt has created havoc in our personal finances that led us to seek assistance from various debt relief agencies and debt settlement companies, we seldom part from our economic follies wherein over-spending plays a crucial role. There are several causes of overspending and if one is truly interested to control it they should not overlook the following reasons, as the overspending can be reduced only when the spender is aware of the urges and triggers behind it.
Since our childhood till we grow up into adults we tend to get affected by bad influences of other people whom we see spending uncontrollably. We thus take it for granted that spending so much is fine and fun both; especially if we were never talked to about budget and importance of being debt-free. In many cases, our extravagant environment also cast a wrong spell in our spending habits. Thus certain bad but tempting influences and surrounding prompt us to over-spend in a subtle act of imitation.
Our spending habit creates its foundation from the first time we get an allowance from our parents and are given responsibility of spending the same wisely. When we get a job and a credit card for the first time we may have no necessities to be responsible for yet and if we start overspending since that point of time, this may take a shape of a bad habit and would continue till a longer period. That is because over-spending ahs got nothing to do with need but urges and habits.
Peer pressure is another reason which drives us to overspend just to fit in our social friends' company and to keep us with the Joneses. These commercial factors of fitting in' and subtle material competition among our social counterparts provide us enough reason to over-spend out of a love for show offs' and display of material wealth and possessions. That way we think we gain other's admiration and social status symbol. We constantly compete and try to imitate our friends, relatives, neighbors and co-workers and ultimately take part in a kind or mad race of accomplishing and accumulating mindless materials by overspending.
Another popular and strong reason behind overspending is depression that further leads to boredom. People often unknowingly sets out to shop till they drop when they feel depressed; stressed and bored; and they take the option of shopping as the best at that. Without any second thought they visit a nearby mall, grocery store or super-market and purchases stuffs with an impulsive attitude and mostly without any necessity and end up overspending or using their credit cards for the same. Thus these emotional voids create urges to over-spend as possessing something new provides a temporary feel-good factor.
The solutions does not lies in avoiding and escaping all these reasons with tricks and tips, but in finding the root cause behind your habit of overspending and dealing with it positively by providing a better and least expensive substitute. Be it your bad habit, or bad influence, your friends or emotional tantrums; fill yourself with determination and discipline to fight all reasons of overspending.

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