We all know at least one person (and it could be ourselves) who is prone to frivolous spending. He or she forks over hundreds of dollars during each visit to a mall or restaurant, adding to an already massive heap of credit card debt. What's worse, the person makes a habit of asking friends or relatives for money.
What, then, causes this seemingly uncontrollable compulsion to spend?
For a lot of us, it's tied to our self-image and self-esteem. Many people depend on shopping and consumer products for a "pick-me-up" -- much like getting their afternoon coffee fix. Consumers use material possessions to enhance their image -- walking around with that Coach purse or in those Jimmy Choos can greatly boost feelings of self-worth and self-confidence.
There's nothing wrong with this if done in moderation -- we all deserve to spoil ourselves every once in a while. But once wasteful spending becomes a weekly -- let alone daily -- occurrence, it creates the potential for serious money problems.
We should all strive to spend responsibly. If you refuse to live below your means, why not aim to live within them? Don't eat at fancy restaurants each and every weekend and expect your bills not to pile up. Instead of springing only for premium brands, why not try out less-expensive alternatives?
It's partly because of this reluctance to retrench -- the impulse on the part of many consumers to continue their hedonistic ways -- that the Great Recession came about in the first place.
What, then, causes this seemingly uncontrollable compulsion to spend?
For a lot of us, it's tied to our self-image and self-esteem. Many people depend on shopping and consumer products for a "pick-me-up" -- much like getting their afternoon coffee fix. Consumers use material possessions to enhance their image -- walking around with that Coach purse or in those Jimmy Choos can greatly boost feelings of self-worth and self-confidence.
There's nothing wrong with this if done in moderation -- we all deserve to spoil ourselves every once in a while. But once wasteful spending becomes a weekly -- let alone daily -- occurrence, it creates the potential for serious money problems.
We should all strive to spend responsibly. If you refuse to live below your means, why not aim to live within them? Don't eat at fancy restaurants each and every weekend and expect your bills not to pile up. Instead of springing only for premium brands, why not try out less-expensive alternatives?
It's partly because of this reluctance to retrench -- the impulse on the part of many consumers to continue their hedonistic ways -- that the Great Recession came about in the first place.
Comments