Though some people may be struggling to pay pills amid a recession sparked by a global pandemic, it doesn't mean those in a stronger financial position (or not) won't be running up their credit cards and breaking their piggy banks -- whether online or at the mall. And, ironically, it's all in the name of scoring holiday deals.  Here's what many shoppers fail to realize: Sales are just ploys to get us to buy stuff we may not necessarily want or need.  We go into a store intending to buy or two things and end up coming out with well over five.  We set a maximum holiday budget, but end up blowing right through it as we aim to take advantage of as many "bargains" as we possibly can. Now, that's not to say we shouldn't seize a good deal for stuff that we use regularly. But if you know it's an item you'll stuff in a drawer or closet -- one you might not even remember you have in six months' time -- you should pass on it. Here are four valuable ho...

How many people have you come across in your life who have been envious of something you possess or have accomplished? Maybe it's the new car you bought or the Hamilton tickets you managed to snag. Perhps it's the promotion you landed as a result of your hard work. Or perhaps they envy your fairytale-like marriage. While I've emphasized that material possessions don't bring us lasting happiness, you have every right to acquire and enjoy whatever you please. As long as you're not spending recklessly and hurting yourself or others in the process, what you buy with your hard-earned money is no one else's business. People should focus on themselves and quit worrying about what others are buying, whether it be cheap or expensive.  The problem is that human beings have this seemingly unshakeable tendency to compare themselves to other people.  Certain individuals can't live with the fact that others may have a better house, a prettier spouse,...

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...

According to a new study in the Journal of Consumer Research , even subtle reminders of idealized bodies can encourage overweight consumers to overspend. Studies show that exposure to body cues (i.e., shapes) can have unintended consequences on seemingly unrelated behavior, such as spending. Seeing a thin -- as opposed to wide -- human-like shape prompts high-body-mass-index consumers to make more indulgent spending decisions. The authors found that mere reminders of the thin-body ideal can cause overweight consumers to feel worse about their own abilities, including management of their spending impulses. In one study where consumers were shown an object with a thin, human-like shape (e.g., something that resembles a Coca-Coca bottle), high-BMI consumers were more likely to buy a higher-priced, Fiji-brand bottle of water than a lower-priced, generic-brand bottle. Another study on shopping found that high-BMI consumers were more willing to take on credit card debt after seeing a...

As someone who's been a victim of identity theft multiple times, I know firsthand how important it is to keep your personal information safe, and how frustrating it can be once it's compromised. Here's a valuable tip: If you can't use cash, use credit cards. You should aim to use debit cards only in the event that you need to withdraw money from the ATM. Credit cards offer two key advantages over debit cards: 1. They're safer: Most credit cards these days offer consumers zero liability protection. This means that they're not responsible for any transactions made without their authorization. All fraudulent purchases are removed, thus bringing the cardholder's balance to where it should be. With debit cards, the process isn't as hassle-free. The bank will dig deeper to ensure you didn't make the transactions and will usually require you to fill out and send over paperwork. What's worse, you have to wait for the bank to give you your money b...

We often hear clichés like, "What others say about us doesn't matter," and "the only opinion about you that matters is your own." Noble, yes, but let's face it, folks. We DO care about what others think of us -- a lot. Case in point: Many of us spend a considerable amount of money on brand-name products. But why do we do this, exactly? There are two principal reasons: It makes us feel good: Ask consumers out there why they specifically zero in on premium brands and many will tell you that it simply makes them feel good. The fact that you own a $1,250 Louis Vuitton purse and none of your friends do might make you feel as if you're in a league of your own. This feeling of exclusivity can boost one's self-worth, self-esteem and, in some cases, self-aggrandizement.   We thrive on social acceptance: Compliments from other people provide an even bigger impetus for luxury spending. What drives people to buy items with big price tags is not so m...

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...