Personal Finance Advice

Almost everyone can remember an instance when they spent too much money.  Maybe you bought a car without doing very much research or perhaps you maxed out a department store credit card during a whirlwind shopping spree.  As long as you were able to financially recover from your mistake - and learned something from the whole experience - then it’s not really something that you need to be too terribly concerned about or ashamed of.

On the other hand, if you are one of the many people who actually have a spending problem then you might not be able to narrow your financial missteps into a few isolated incidents.  You might instead have a consistent pattern of spending too much money, feeling guilty for a short amount of time, and then going out and spending too much money all over again.  If your overspending is more of the norm than the exception then you may have more of a problem on your hands than simply spending too much money; you might actually have a spending problem.

What is the difference between just being bad with money and having an actual problem? It’s one thing to be bad with money and to once in a while indulge in some purchases that you shouldn’t make.  It’s another thing entirely to feel as though you couldn’t stop shopping, even if you wanted to.  Shopping can be a compulsion, and just like any other compulsion like gambling or over-eating it’s something that can cause a person to feel shame as well as feel completely out of control.

Why do people develop spending problems? Some people feel empowered by shopping, especially when they feel as though they have really found a great deal.  This can lead some people to actually buy things they don’t need or will ever use, simply because the deal was entirely too enticing to refuse.  At the time of the purchase they may feel as though they are actually saving money because the item they purchase is on sale, but if it’s a childless person buying baby clothes or a person without a car buying car accessories then there is obviously a problem.

Another reason some people fall into a spending problem is because it manifests as a symptom of something bigger.  People who have a spending problem may actually suffer from depression that is not apparent in any other actions except for the overspending.  There are some people who have problems with Obsessive Compulsive Disorder and spend to relieve anxiety.  Other people are literally considered addicted to shopping as a characteristic of their addictive personalities.

How do you know if you have a spending problem? Here are a few signs:

1.  You empowered and excited while shopping, but then feel guilty about the purchases later.

2.  You spend more than you can afford to spend.

3.  You are consistently in deep debt.

4.  You buy things you don’t need.

5.  You hoard items or hide your purchases from other people.

6.  You keep telling yourself that you need to get your spending under control, but you never make an attempt to do so.

The first step is to try to quell your spending problem on your own, but if that doesn’t work then you may need to seek outside assistance.  Debtors Anonymous is a good place to start, and speaking with a therapist or counselor may reveal underlying issues that need to be addressed before you can start to work on your spending problem.