With the rise in the cost of living today, young adults are finding it harder to save their money and control their spending habits.
‘Splurging’ is defined by the Urban Dictionary as, “to spend money freely with no remorse and very little consequence to your bank account.”
The urge to spend money could stem from many different roots. Some make purchases as a way to gain control in his or her life. Others simply don’t realize the effects spending so much money can have on everyday living.
“An important aspect of debt that is not always addressed is why you got too deeply into debt in the first place,” Deborah Fowles of Ask.com said. “Why did you keep charging items you couldn’t afford? Why did you feel the urge to use those little plastic cards for things that weren’t necessary, even when you began to struggle to make the payments?”
Fowles said that people are more likely to spend money when paying with credit or debit cards than they are with cash. With cards, some feel that they aren’t spending real money and are numbed to the feeling that their bank account is actually depleting.
MoneyMatters101.com gives seven helpful tips to purging the urge to splurge.
The first tip is to not make big purchases on a whim. With major purchases, such as computers or cars, it’s best to sleep on it. Wait a day to make the decision. It’s likely the object will still be available 24 hours later.
Another tip is to comparison shop. Compare which purchases are necessary to which are desires. Those purchases that are simply desired but not necessary can be saved for and bought at a later date.
Another way to compare purchases is to find alternatives for everyday investments. Find the cheaper shampoo, toothpaste or deodorant and save a couple bucks.
Creating a budget is a good way to control spending. Decide what money can be spent on what purchases, and stick to that. Giving each dollar a name can prevent over-spending.
If spending is a serious issue, staying out of enticing malls and stores might be the way to go. Avoiding places that tempt the wallet is a good way to circumvent the issue altogether.
Also, be careful and wary of all advertisements. While commercials might highlight the advantages of a product, they’re often careful to avoid the disadvantages and high prices of the product.
Planning and sticking to that plan is the final tip that can help consumers save a lot of money. If purchases are planned and budgeted for, then there won’t be wiggle room for any type of useless spending.