Overspending

Have you ever walked into a grocery store to pick up cookies for your kids or to get one item that was left out of your previous grocery list? You only planned to  spend a few bucks, but instead of buying one item, you left the store with 3 bags of groceries that you didn't plan for. Then you sit in your car, pondering why you have 3 bags of groceries instead of one box of cookies.

Do you go grocery shopping because your coupons are about to expire? Maybe you are a compulsive spender who keeps your spending habits a secret from your partner for months to avoid conflict.

You've probably repeated this phrase to yourself multiple times' I'll never spend like that again". Sorry to be the bearer of bad news, but the truth is that most of the time, you will do it again. I would know since I have been down that path before and I know that it always happens again.

One of the reasons why you might overspend more than once is that budgeting is not that easy and it takes a lot of willpower to say no to all the clever advertisements and sales that you may see in the stores.

Here are two common reasons for people overspending and ruining their monthly budget:

• Sales, Bargains, and Promotions                                                           An obsession with bargains is a big problem for many people. You will buy things that you don't need if you focus on sales or promotional items. I like telling my clients to stop and think before they buy things that are within their budget for the month. You can definitely take advantage of good bargains but it is not a bargain if you have to put the cost on a credit card. Buying a sales item with a credit card means you can't afford it and you will likely be paying more for the sales item with the cost of an interest rate on the credit card. If your child needs a pair of shoes for school and you didn't plan to buy a shoe, then it will make sense to buy the shoe that you found on sale. But you see a pair of jeans that you don't really need and choose to buy it because it is 50% off, that means you are buying the jeans for no reason. Keep in mind that bargains are used by retailers as an incentive to get you to spend more than you anticipated.

• Spending based on emotions                                                                                 If you go shopping because are upset about something, or if spending money is a form of therapy for you then you might be an emotional spender. An emotional spender isn't necessarily looking for bargains but shops because it makes them feel good. If you are someone who buys expensive things just to be accepted as part of a group, you will be challenged with keeping to a budget.Material possessions do not define who they are. People will love and accept you if you are genuine.

A finance coach can help you structure your monthly spending, create a budget and holds you  accountable for your spending habit.

Please feel free to email me at margmortgages@gmail.com if you have any question(s). You can also leave a comment below and subscribe to the blog for future updates.