3 Habits That Can Lead to Overspending
Overspending is an issue many Americans face. Whether it’s spending beyond our means on a new car or racking up a credit card at countless restaurants and stores, we typically tend to spend more than our budget allows in a given month. In fact, the average American household has accrued approximately $8,000 in credit card debt.
How did we get to the point of where it seems we all owe so much? Sure, there is the rising cost of living that has been outpacing income for a decade. However, if you look at finances from a personal level, you may begin to notice habits that are to blame for your overspending tendencies. To see if you have any of these bad habits, consider our list of three habits that can lead to overspending.
Making Purchases on a Whim
Do you go into the grocery store without making a list? Do you continue to eat out without looking at your budget? Making financial decisions without doing your due diligence, a.k.a. making purchases on a whim, is our first bad habit that leads to overspending. It’s always better to plan out both short-term and long-term financial decisions.
Treating Yourself When Direct Deposit Hits
Lets face it. When that paycheck finally hits our bank account, we immediately have the urge to go out and buy new merchandise or treat ourselves to a fancy night out. But you need to keep in mind that your available balance doesn’t accurately represent the amount of money you have. From bills to monthly payments, having a budget plan will help you better manage your cash flow.
Being Controlled By Your Impulses
There are some urges and desires that are more difficult than others to control. If you are controlled by your impulses, you can easily be tempted into overspending. The two main features of impulsivity are spontaneity and disregard for consequences. You can curb this bad habit by creating a plan for avoiding situations where you feel obligated or vulnerable to spending.
Do any of these habits sound familiar? You still have the chance to change these bad habits. That also means you have a chance to change your financial situation. At Tadross Law, we have attorneys who can provide debt settlement solutions to untangle you from bad habits and financial decisions. For a free consultation, contact our law firm in Philadelphia or Lansdale today!