Why Do People Spend Money They Don't Have

7 Reasons Why People Spend Money They Don’t Have

I’ve often wondered why do people spend money they don’t have? After researching this topic, I’ve come up with the top 7 reasons why people spend money they don’t have.  The reasons are as follows:

1. They’re addicted to shopping.  There is a thrill and a rush that occurs from shopping can easily become a habit that you just can’t stop. The brain releases dopamine and endorphins during this time, which causes this type of rush and makes the entire act highly addictive.

2. They want to feel good.  This sort of goes back to the initial addiction.  It feels so good when you buy things you can afford. But it also feels really bad once you realize that you can’t afford.  But to those who get addicted to these feelings believe that the high of the experience is worth the horrible feeling once it’s over. 

3. It’s exciting. Some people need the feeling of excitement, especially when depressed or angry. They will use overspending as an excuse for something else that is lacking in their lives. 

4. Desire to keep up with the Jones.  While often it is hard to believe that these types of people who exists, but there are some people who can’t stand for others to have more than they do.  As a result, they will do whatever it takes to make sure that they’re keeping up with their peers.  Even if it means spending money that they don’t have. 

5. Peer pressure.  It’s hard being the odd man out.  A lot of people when spend money that they don’t have because they don’t want to look bad in front of their family and friends.  This is not about keeping up with the Jones.  This is about not being embarrassed by lack.  

6. Don’t want to disappoint their kids.  Parents are probably the biggest offenders of not spending money that they don’t have by spoiling their kids.  It’s hard not to satisfy the whining of a child.  But sometimes they must be ignored, especially when you simply can’t afford their demands.  

7. Instant gratification.  In today’s microwave society everybody wants what they want and they want it now.  Folks will overspend today because they can’t wait until they have the money for their purchase. 

Why Do People Spend Money They Don’t Have and How Can They Stop

Most of the reasons that people overspend have to do with their feelings.  If people could control their feelings, then they could manage and control their spending habits. Some of the things that folks can do to stop overspending are:

  • Don’t go to shopping malls.  If you know you have a problem with overspending, then don’t put yourself in an environment to overspend.
  • Whenever you shop make a list.  Having a list can keep you on target and stop you from making unnecessary purchases.
  • Leave you credit cards at home when you go out.  If you bring your debit card only, then you probably would be more apt to stick to a budget. 
  • Cut up your credit cards and don’t request a new one.  Simply wait until the card expires and the credit card company sends you a new card. 
  • Create a budget.  When you sign up for websites like You Need a Budget, they will teach you how to give every dollar in your budget a job. 
  • Count backwards and walk away.  Give yourself time before you make your next purchase.  Allow yourself the chance to “sleep on it.”
  • Try to reverse engineer the feelings associated with shopping and redirect them towards savings. Get excited about saving money. 

If you do the things above you may be able to effectively eliminate the desire to overspend.

How Does This Impact Retirement?

Heaven help the person that can’t kick the habit of overspending.  Not being able to control this horrible habit could leave you retired and broke.  Who wants that? 

The only way to retire rich and happy and that is to save money for it.  And they only way to save more money is to either make more money or cut back on expenses.  Just to think about cutting back drives the average person crazy, therefore the only other thing to consider is making more money.  Both choices require lots of hard work.  Don’t wait until the last minute to decide which one you’re going to do.  Make a decision now. 

One way you can make more money is by joining a home-based business.  I say join one that sells products that will keep you healthy and young while you age and the premiere company that does that is Youngevity.  Learn more about becoming a member of Youngevity by clicking here.

Enter in Rep ID YNGSP29

I would love to welcome you to my team over 3,200 reps! 

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