|Debra Vaughn is a stay-at-home mother to three girls. She is a freelance
writer in her spare time. Debra Vaughn also edits and publishes The Family
are as many reasons that people overspend as there are budgets to
help get people out of the debt overspending has caused. By talking
to people, conducting surveys, and helping people throughout the
years, I have made a list of ten reasons for overspending that I hear
Take a look to see if you fall in line with one or more of these
causes to indulge.
10. Keeping up an image
feel that if they fall below a certain image that the neighbors set,
the neighborhood will think less of them. This is known as keeping
up with the Jones'. The truth behind this is that the neighbors are
thinking and feeling the same way.
I cannot tell you how
many people, in all financial situations, have told me that the
spend too much money for lunch out with friends, shopping with the
girls, etc is to not have to admit that they cannot
afford to pay the bill for the whole table. If your friends drop you
because you cannot afford to buy them lunch are they really
8. The money is on it's way
heard this over and over "I thought the check was in the mail."
The people who tell me this are telling the truth! The check was in
the mail, either late or for far less than was expected. When they heard
they were getting money, they spent it before they had money in
7. Credit doesn't feel the same
face it, plastic simply does not feel the same as good old-fashioned
paper cash. For this reason people use credit more often and tend to
over spend much more than they would if they had used cash instead.
6. Immediate gratification
can go into a store, see something you think you need NOW, then get
credit in 5 minutes or less, you feel a sense of accomplishment.
After all, you get what you want now, and don't have to think of how you are
actually going to pay for it until later, when the bill arrives.
5. Lifestyle maintenance
person has lived a certain way for a while and suddenly find
themselves in a bad place financially, it is hard to give it up.
They feel the
lifestyle they have become accustomed to must be
maintained, even if it means more debt followed by bankruptcy.
4. Poor as a child
Freud would love
this one! Many people who were poor as a child feel the need to spend
everything they can get their hands on as soon as they can. Perhaps
there is a fear of someone taking the money away if it is not spent
immediately. These people must realize that once it is yours, that is
it, it is yours.
3. Sense of power
Spending money makes many people feel more powerful. Whether it is handing
over a wad of cash or pulling out a gold card to charge money, the
simple act of spending a large amount of money gives them a rush of
2. Prove self worth
Spending $40 on a
haircut, $120 on a designer dress, $30 on a new pair of shoes, and
maybe $75 on a facial every other week sounds outrageous to most. However, for many people, it makes them feel like they are
someone. It makes them feel like they are worth something to the
1. Just can't say NO!
This is the
one that I have heard the absolute most. Whether it's a child asking a
parent for the newest fad toy or a spouse wanting the newest
computer game, some people just cannot say no! Even if they cannot
afford to say yes. They feel like a failure if the
money is not there to meet the wants of the other person. No matter
what, these people will make it happen, even if it becomes a dead
end to bankruptcy court.