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2-Cent Rant

10 Reasons You Overspend And How To Avoid It

Our money was well spent… wasn’t it?

 

We’ve definitely had moments when we splurged on something we took a liking to, then felt guilty for spending so much money. It might have been on a branded handbag, the latest electronic gadget, or a meal at a fancy restaurant.

Here are 10 common ways we try to convince ourselves that what we just paid for is worth every single cent on the bill.

#1 “This will make me really happy!”

Yes, the number one reason why you should be buying this $300 pair of heels. What about having a nice meal with your good friends or spending some time with your family and loved ones?

There are many other activities you can bring you happiness, and splurging on something unnecessary is only one of the (very expensive) options.

#2 “But it was on sale! 50% off!”

Decision to buy something should not be dependent on whether there is a sale or not. In fact, it should go the other way around – if you want to buy something, look for it on sale.

Ask yourself: Do I still want to buy this if it’s not on sale? It will then be obvious whether you should spend that $150.

#3 “Since it’s more expensive, I will use it more often!”

If you are someone who likes to use this excuse, check with yourself before purchasing an expensive item: Would I still use it as many times if it wasn’t expensive?

It is likely that your answer is no because you are forcing yourself to utilise what you bought, just to not feel guilty about splurging.

#4 “But this has so many more functions!”

Admit it, how many times have you used the extra new functions on your upgraded phone? How often did you use your smartwatch too? Gadgets are usually marketed to sell a special new function so that they are differentiated from other similar products, but the truth is that these new functions are usually gimmicks.

While they will keep you entertained for a while as you show them off to your relatives, you will probably not spend much time on the new functions. That is because at the very basic level, all you need is a phone to call and text people, and a watch to tell you the time.

#5 “It’s still worth it because I can share this with my mum/dad/sister/brother!”

A $1000 iPad that can be shared between four family members – that’s only $250 per person! But did your family members agree that they wanted an iPad, or did you make the decision yourself? $1000 spent on four people is still $1000 spent.

#6 “Once in a while is ok.”

Not having a clear definition of “a while” is dangerous as this can become a very convenient excuse! If “a while” is a week, then your spending habits are definitely not sustainable.

#7 “Had a tough week, I need a pick-me-up.”

Retail therapy might work, but it is neither healthy nor sustainable. Letting consumerism habits dictate your emotions might cause you to be dependent on splurging to feel happy.

Furthermore, you will definitely run out of cash one day and run into debt if you are unable to stop your reliance on emotional spending.

#8 “I’m paying for higher quality.”

As the popular Chinese saying goes, “You get what you pay for”. But that is not an excuse for buying everything with a high price tag. If you are buying a $300 watch, does that mean it is considerably better than a $100 watch?

One has to understand that there are many factors contributing to the price of a product. These include marketing cost and cost of importing it from overseas which have nothing to do with the quality of the product. Hence, when you buy something marginally more expensive, it is good to question whether the difference in price can be justified.

#9 “It’s better than wasting money on cheaper alternatives that I won’t use.”

While this may make sense sometimes, it does not give you a reason to not look for other less expensive options that you will enjoy using. Learning to take pride in making a smart purchase will be less harmful to your wallet.

#10 “Money is earned to be spent!”

Spending your money is just one way to use your money. Saving is another way to use your money because you never know when you might have a rainy day. That $500 you just spent could have gone towards your investments, which can buy you many more things in the future.

Conclusion

Nowadays, it is common to see people overspending now because of our consumerism lifestyle, but you can definitely overcome it if you change your mindset. Always remember that there are many alternatives to consider before spending your money, so think smart and spend smarter!

Read also: Why You Should Not Be Overspending On Insurance Policies

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