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Live Within Your Means

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Why Do People Overspend?

If you ask someone why they spend more money that they have, they probably could not tell you. And the ones that would answer you, would tell you that it makes them feel good and that feeling probably fades long before they get their credit card statements. There are many things that go on in a person’s life that causes them to compulsively overspend.

There are several television shows that profile people in debt and the biggest majority of them have issues with overspending. They will leave car payments and mortgage payments unpaid so that they can buy more things. Many of them will have closets full of clothes with most of the pieces still sporting the price tags. I can’t imagine paying $400 for a handbag or a pair of shoes, but many of these people did…several times over.

Live within your meansThe sad thing is many of them get so overwhelmed with the debt and other things going in their lives. Once they get to this point, it is difficult for them to deal with the real issue because of the stress of the debt. And when it comes to couples, if one is a spender and the other not so much, the non-spender sometimes feels as if their significant other is spending, they should be able to spend too. And that recreates a vicious cycle.

In order to resolve this problem, you may need some outside help. If you have a spouse, many times there is conflict and lack of communication and this will need to be dealt with before things will get better. Even as a single person, talking to a financial counselor or a life coach would not hurt. It is going to be hard to get out of debt, if you cannot stop over spending.

Here are a few tips for dealing with compulsive overspending:
* Get rid of the cards and live on cash. Once the cash is gone…no more spending.
* Balance your budget. Learn to live within your means. It is also important to be realist about expenses and make sure that your budget is doable. Many people make the mistake of trying to get by not allotting enough money for certain things.
* Find ways of cutting back on your expenses. If it is something you enjoy, try not to eliminate it. Find a way to have your pleasure for less.
* You may have to look for ways to increase your income to get out of debt more quickly.
* If you find yourself struggling and seem to still have spending problems, get help. Debtors Anonymous is a group for people that have debt problems and most of them are due to compulsive behaviors. Counseling and personal coaching are also an option.

Remember, this problem will not go away overnight and changing it is a process. Making a visual aide or writing about what you want in a perfect day can be great tools for helping you to stay focused on your goals.

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About the Author

Rhonda Evans

Rhonda is the founder and editor of MoneyPoint Live. She is a retired Senior Chief from the USN, mother of two, previous small business owner, and entrepreneur.

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