Overspending is acknowledged as an addictive behavior of spending more than what one can afford. People who overspend do it for it relieves them from stress and provide happiness. People usually overspend when they can spend using credit. Overspending is notorious for it affects a person’s life to a great extent.
You will be shocked to know an average American has $38,000 in debt which means they spend a lot of money. This figure isn’t inclusive of home mortgages, rental costs, and others. The cons of overspending weigh more than the pros of overspending which are almost inconsequential.
In this article we will guide you through 13 things that many people overspend on:
- Wedding
Whether its somebody’s first or fourth, many people leave no stone unturned in making sure they spend a lot of money to make their big day memorable. There are many ways with which you can save significant amounts of money if you want to. If everyone has a smartphone, there’s no need to hire a professional photographer who charges another thousand dollars for his/her services. Similarly, people overspend on dishes and extravagant clothes which they might not wear again for the rest of their lives. Moreover, with wedding planning being an entire industry, people like to get professional services even if they don’t have the budget to afford it.
- New Cars
The ethos behind having a vehicle should be to have comfortable traveling, but now the roads are like runways where the car-show is going on every minute. The drive to buy the latest model is what compels many people to frequently change their cars even if they don’t have the budget to buy an expensive car. The biggest mistake that people make is they start taking everything for granted and suddenly the habit becomes an addiction. Even if you can’t afford to buy a new car, you should be grateful for what you have.
- Mobile Phones
Ever since inception, androids created a rage in the industry. With much advancement in technology, companies launch a new model every few months up to grab the audience. Even if somebody has an iPhone 8, he/she will start drooling over the newest and iPhone 11 Pro, which just arrived in the market. Those people rush to the newest model without realizing how well the older one works for them. A new model is often nothing but the same thing with the addition of a few new features and some minor changes in the design. However, people who have the addictive nature of overspending always fall for the trap of money-making businesses.
- Food
There’s no escaping from the fact that the food industry continues to thrive every single day. You may be shocked to learn that the fast-food industry globally is worth $570 billion. This means people spend a lot of money on it. Even if somebody has the best-cooked meals at home, they will prefer to dine out with friends and family. The truth be told, the human body doesn’t need as much food as is advertised in commercials and ads. The human body needs the right food and in a specific amount. Too much overspending on food doesn’t just kill the bank balance but also leads to obesity and many other diseases.
- Clothes
When you need just two pairs of jeans for the holiday season, why go to the market and buy five pairs? This is exactly what everyone should think about when going for shopping. They say, women love shopping, but today, men have joined the bandwagon as well and spend thousands of dollars on clothes.
There is no real need to buy expensive brands of clothes every month. Even local shops these days have clothing of the finest quality. There’s no reason for spending on extra clothes when you already have your wardrobe filled with everything you want. The clothing industry is a rampantly growing one in the world with designers and artists coming up with amazing ideas every single day.
- Skincare products and cosmetics
No one can deny the fact that women are obsessed with makeup and skincare products. However, there are also many countries in the world where it is culturally alright for men to put makeup on their faces too.
Even if skincare is to be taken as a gender-neutral thing, makeup is also joining the same category as more men choose to incorporate cosmetics in their everyday lives. People spend a whopping amount of money on cosmetics when they already have everything in the correct amount. The beauty industry is valued at $532 billion globally and continues to expand.
- Insurance and warranties
Even if somebody doesn’t necessarily need an insurance policy, he/she will buy it in the pursuit of securing their future. For example, is you live in a state where natural disasters are common, you can buy a home insurance policy. However, if you live in a state where natural disasters don’t occur, there is no need to buy as comprehensive home insurance policy unless you have some other issue. Insurance cost depends on the policy you are buying. Therefore it is crucial to that policy which is the need of the hour and fits within the budget you have.
- Eyeglasses
No one can deny the fact; sunglasses are trending in the field of fashion and continue to be a major accessory. However, if you have one pair of sunglasses when going out in the sun, you don’t need to have dozens of pair in your closet. Eyeglasses do make a fashion statement of their own, but it isn’t important to have so many of them. A single pair of eyeglasses can be complemented with many clothing items. Seldom do people understand this point and curtail the money they spend on eyeglasses. If you can get a suitable pair of eyeglasses for $50 online, there is no need to spend $500 on a single pair from a well-reputed brand.
- Education
While people say it is crucial to spend on education in this day and age, but most experts say it is not a mindful decision if you enroll in a college the fee of which you cannot afford. Education is crucial in this day and age, but it is also important to stay within budget. You will be shocked to learn that student loans are increasing every day with more young people enrolling in programs which they can’t afford to pay. Millennial debt is another reason why mental health has become an issue amongst young people. People spend money on education in the pursuit of getting a good job at the end, but when they are unable to come across good opportunities, it becomes difficult to pay off that loan.
- Diamond rings
You’ll notice we didn’t place diamond rings in the wedding section, this is because diamonds are another industry that is worth billions of dollars today. Most people propose their spouses before marriage which is why it is crucial to acknowledge diamonds as a separate entity. Furthermore gifting a diamond ring is more of an emotional decision rather a mindful one. Furthermore there is no confirmation if you will get married to the person whom you’re gifting it to. Diamonds rings are very expensive and cost thousands of dollars. However an interesting part to note about diamond rings is they are negotiable.
- Funerals
It is common for all of us to get carried away by emotions when a loved one passes away. However, is it wise enough to spend thousands of dollars on the funeral? Certainly not! The best way to avoid overspending on funerals is to make advance arrangements. There are professional companies in the market which provide everything from the casket to the flower décor. However, they charge a hefty amount for the work they do. Funerals procession should be held in a simple way, but now people spend millions of dollars which ultimately bring no benefit.
- Parties
Whether somebody is 15 years old or 55, when it comes to parties, people can’t control themselves. Furthermore the money is spent on things which aren’t even good for health. Most people spend on alcohol, processed foodstuffs and weed. It is alright to spend quality time with friends and family, but not okay if you have to buy everything with a credit card. When people have credit card in their hands, they are naturally compelled to spend more to please people. However, what they forget is those people don’t have to pay for the food somebody else is bringing in.
- Too much electricity
When one of the LED lights can light up your entire house, why incorporate so many lights? Too much electricity is an extra burden when you don’t control it. Though, you might not have to pay for the bill every day but will have a staggering accumulated amount to pay at the month-end. Expensive and exquisite lighting options compel people to pay more, but it is not wise enough to fall for that trap. Therefore you must curtail your electricity usage if you intend to save those extra dollars.
How to curtail the habit of overspending?
Overspending is a notorious habit which isn’t going away too soon if you have it. Most people get bankrupt when they overspend and have nothing in their accounts. If you’re from Los Angeles you can google Los Angeles bankruptcy attorney to get a suitable lawyer to help you with the issue. The best way to get rid of the habit of overspending is to create a demarcation between needs and wants. When people fail to draw a line between necessities and luxuries, they fall for the trap of overspending, which kills long term goals, savings and has an impact on the entire house.
Overspending is an addictive behavior in some and a habit of many people. Some say it is their therapy whereas some claim they can afford to do it. However, everything in moderation is the right move in life.