“Too much month at the end of the money” is a phrase many of us find funny and relatable. But serious financial problems are no laughing matter. Finding yourself eating rice and beans until payday because you spent too much on electronics or the latest fashion trend might seem like no big deal, but what about the big picture? What happens when an emergency comes up? What happens when it’s time to retire?
A 2016 report on financial capability by FINRA Investor Education Foundation found that about 60% of Americans spend about equal or more than their income. And, a GoBankingRates survey in the same year found that 70% of Americans have $100 or less saved for retirement. Not only are most Americans retiring without a savings, they’re retiring in debt.
With statistics like these, you may be ready to start making more responsible money decisions. Here are five reasons you’re spending too much money, and what you can do to change your mindset.
I can’t wait!
There’s nothing quite like instant gratification. But indulging in that impulse buy will either blow your budget, lower your cash flow for the month, or put you further in debt. If you save the money to make that purchase in cash instead, you’ll not only find out over time if you still want it, but you’ll also save potentially hundreds of dollars in the interest you would have paid if you bought it with credit.
It’ll make me feel better.
People often use “retail therapy” to give themselves a mood boost. If you’re feeling down or depressed, find other sources of comfort like a bubble bath, a cup of tea and a book, or a walk in the park.
I’ll be getting more money soon.
Too often, we overestimate our potential for earning money, and underestimate future expenses. If you’re looking to create a comfortable nest egg for yourself, you need to focus on rising future expenses to avoid buying something you really can’t afford.
It’s a special occasion.
Everyone likes to spend a little extra money on a special occasion, but unfortunately, special occasions seem to roll around more often than most of us can afford. Curtail your special occasion spending by setting a cap for the year, then budgeting by month. Save money by planning ahead or handcrafting gifts.
I earned it!
If you just finished a complex project or landed a big client, you might be tempted to overspend to reward yourself. Of course, you earned it, but making responsible financial decisions means you’re making choices not just for your happiness and comfort today, but for decades into the future.
Are you struggling with finances and need help becoming a better money manager? Call my office today and let’s set up an appointment to talk.
 2016 GoBankingRates survey (https://www.gobankingrates.com/saving-money/data-americans-savings/)