Many of us complain of being strapped for cash, forcing us to put off vacations and even milestone events like graduation, marriage and having kids. But we don't realize that our poor spending habits are likely to blame. Whether you're living on credit or spending significant sums on stuff you may not even use, such practices add up over time, resulting in in a mountain of debt, depleted savings, and other unfavorable consequences that can wreak havoc on your life. Look in your closet or drawers. Do you have various items that still have price tags on them? That probably means that you bought them to jump on a sale, not because you really wanted them in the first place. I caution people against buying things simply because they'll get something free or a second item half off, for example. It induces us to buy things we otherwise wouldn't buy if they weren't on sale. So, what happens? These things are left collecting dust at home while your bank account...

Coupons. Discounts. Sales. We all love them. Anything that allows us to keep more money in our pocket can only be a good thing, right? Any signage at stores that says "buy one, get one free" or "50% off" can be so disarming. It's as if it gets our "spend money" sensors tingling. Ironically, coupons and deals compel us to spend money we would otherwise not shell out. Most consumers don't want to feel like they're missing out on a great bargain, so they're willing to purchase something they might not even need or be interested in. It's all psychological: we  care more about saving money than the actual product we're getting. "If I don't jump on this deal now, the price might go back up." Or so our thinking goes. Is it any wonder retailers have been so successful at driving shoppers to the checkout lines by imposing time windows? ("Hurry! This deal ends soon.") I work in and studied marketing and psy...

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 fo...