Are you confident about your spending habits? You may be surprised once you track your expenses and see how much you spend. Innocent self-rewards can become uncontrollable buying urges if you keep missing the signs. And here's the kicker: while some people can poke fun at overspending and shopaholics, the behaviour can post severe problems if you do not keep your finances in check. Don't wait for your finances to sink. Keep reading to know if your spending habits are still healthy or will soon wreak havoc.
Your Wardrobe Need More Space
Compulsive buying behaviour is not only seen in women. In fact, men are perceived to be spending £1,000 on fashion each year. The most common sign of overspending is a closet brimming with clothes, shoes, and accessories, but you still think you have nothing to wear.
You are constantly in "Survival Mode"
Why do you usually feel like you are in a "financial survival mode" days before your payday? Did you get a pay raise but still fail to balance your finances? Perhaps you enjoy treating yourself to fancy restaurants or fashionable clothes every payday but ends up penniless before the next paycheck. Rewarding yourself can motivate you to work harder, but you must know how to prioritise your needs over wants.You Keep Putting Off Your Bills
According to Life & Debt author Leslie H. Tayne, people who continuously borrow money from relatives to pay their bills are financially strapped. Overspenders usually can only afford to make minimum payments every month after splurging on their wants. What many need to realise is they are losing more money when they choose to put off their bills paid. The remaining balance incurs late payment charges. Worse, unpaid credit card bills and loans can also hurt your credit score in the long run.Your Salary is Just Enough to Pay Off Your Debts
Deduct your overall due debt from your monthly income. A negative figure means you are living way beyond your means. When you go shopping like there is no tomorrow, you will borrow money to make ends meet until your next payday. When payday comes, you have to use up your salary to pay up your debt. Acquiring debt, paying on payday, and then purchasing new mortgages can be a depressing cycle.Credit Cards Are Vital to Your Survival
There is nothing wrong with going cashless through a credit card, but everything can go wrong if you shop way more than you can earn. You overspend if you have no choice but to pay with a credit card. If you make shopping a hobby, you may use up your salary and forget the bills waiting for you at home. G is fine even using your credit card; you have to buy only the things you can realistically afford to pay in cash.Maxed Out Credit Cards
Maxing out one credit card is one thing, but maxing out two and more spells financial disaster. Large purchases can increase your credit utilisation ratio and pull down your credit score. In fact, it is advisable to use most of your credit limit to keep your credit score healthy. Marketing professor Carey More wedge shared that the high credit limit makes purchases appear small. A five-dollar coffee daily does not hurt when your credit limit is $5,000. But it will all add up to a staggering bill.You Secretly Feel Ashamed of Your Spending Habit
Spending is fun, but debt isn't. Financial repression can occur when you feel hopeless about your overspending. Almost 22% of people in the UK will not share their debt secrets with their family and partners. Nearly 22% of people in the UK will not share their debt secrets with their family and partners. Unfortunately, many will not share their financial troubles with their family. They will try to hide it and even avoid getting professional help. They hide it out of embarrassment until the debt blows up and affects their lives.Your Shopping Habits Interfere With Your Life Plans
Eventually, uncontrolled shopping urges can interfere with your long-term goals, such as buying a house or a brand-new car. There may be the willingness to save up, but your shopping urges gets the better of it that you end up spending the money you have intended to save up. You might think that it is just a tiny part of your savings that you are using now, but continually doing so means robbing your future self of a better financial status.Paying for Unused Services
Overspending does not only applies to material purchases. When you pay for a service you leave unused, you are overspending. One of the most common new services is a gym membership, TV streaming, music streaming, magazine, and hobby subscriptions. In fact, 50% of the 2,213 adults in the UK admitted that they rarely visit the gym though they have already paid the membership.You Feel a Rush of Euphoria When Shopping
You shop to feel better about yourself. Buying a new dress or outfit provides an immediate self-confidence boost and a brief "high". This is why it is hard for shopaholics to stop their shopping urges. This is why overspenders are encouraged to wait 24 hours before purchasing. If you think you need to buy something, wait 24 hours to see if the urge subsides. Additionally, you can find other fulfilling hobbies to take your mind away from shopping.Final Thoughts
It is vital to regularly evaluate your spending behaviour to avoid getting tangled with financial dilemmas. Not only will overspending take away your cash now, but it can also cause consequences you will bear for years to come.And though many consider overspending habits as something to be ashamed of, getting support from loved ones and trusted friends can help you break out of its chains.
