188 The Psychology of Overspending and Tips To Avoid It In The Future

The question I have for you is this, are you an overspender? Overspending has everything to do with one's emotions because it is the only justification for why people purchase things they know they cannot afford.

Self-control tips and strategies are shared during this episode of the Wealth Academy Podcast. Research reflects that advertising, lifestyle creep, and social pressure contribute to overspending, through it all trying to live like the Joneses is not a good financial strategy by any stretch of the imagination.

The psychology of overspending also has a lot to do with pressure and baggage from days gone by, growing up in poverty and not being able to purchase things in one's youth also plays a role in people living above their means. So what type of behavior do you have pertaining to your finances? 

In the end, overspending comes down to decision-making when purchasing items, and the people that have a tendency to overspend have no decision process when it comes to spending. 

It takes time for some people to stop overspending, thus it is not something that happens overnight for people because it has been taking place in most cases over the lifetime of some people.

Tips to avoid overspending:

1. Plan purchases with a shopping list.
2. Use a retirement savings projection plan.
3. Pay with cash as opposed to credit cards.
4. Consider why you are pursuing items.
5. Track weekly savings deposits.
6. Use a savings account without early withdrawals.
7. Keep budgets for shopping trips.
8. Set specific savings goals.
9. Keep cash in bills in general.
10. Anticipate future regret over purchases.

These financial self-control strategies can assist individuals to limit overspending and increase their spending. Apply the tips and strategies that best serve you and consult your financial advisor, financial firm, accountant, and or attorney for professional expertise and make overspending a thing of the past for you.

Tune in to listen to this episode with Paul Lawrence Vann and over 188 episodes of Wealth Academy Podcast at this link  https://bit.ly/3n84XSF