Understanding Overspending

For some people, overspending is a serious problem. For them it is not a matter of simple knowledge and organization, it is an emotional drive that is challenging to deal with, to say the least.

If you find yourself struggling with this problem don’t hesitate to get professional help if needed. Don’t let it destroy your life and that of your family.

If your problem is less serious, but nevertheless real, try to improve your effectiveness in dealing with it by taking some proactive steps to understand your buying habits better. Then lay out some steps to achieve change.

To develop understanding, ask yourself some key questions:

• What drives you to shop? Just to shop or to purchase in response to a predetermined need?
• What is your earliest memory about money? Why do you think you remember that experience and not something else?
• Are your memories of money related to insecurities?
• How do you feel about shopping? Do you like to shop when depressed? Or when feeling tension?
• Do you spend when you know you cannot afford to do so?

Writing out your thoughts is one of the best ways to develop your understanding. Reflect on each of the questions above and write out your reflections. Think about how these emotional responses to life situations are affecting your mental and financial conditions.

Once you have a better understanding of your buying motives you can take steps to change. The best way is through substitution. Think of what you could do instead of shopping, for example going for a walk.

If one thing doesn’t work, try another. But whatever you do don’t give up until you lick this problem. You can do it, and when you do you will never be the same again.

There are numerous resources available to help if necessary. Olivia Mellan has written a book, Overcoming Overspending: A Winning Plan for Spenders and Their Partners that is very inexpensive and offers lots of help.

Spending money is not a hobby. Cruising the mall looking for new ways to exchange your money for more things is not a good use of time. Learning to shop by plan only for things you need—or legitimately want for activities you enjoy—is a primary key to success.