We all have our creature comforts – those habits that, for better or worse, we indulge on a daily basis. However, while a regular morning treat or a new pair of shoes might seem harmless, you’ve got to consider their effect on your bottom line. some money here and some more there add up over time – and, despite your efforts in other areas, they could be one of many reasons you’re still mired in debt.
1. Impulse Buying
Those who are constantly in debt are often the type to snatch up something whether it’s on sale or not – even if the purchase wasn’t exactly planned. However, impulse buyin can lead to a series of dangerous spending behaviors:
- Justifying Unplanned and Poor Purchasing Decisions. By justifying a “need” for an expensive bag or new gadget, you allow yourself to overspend and find reasons why it makes sense.
- Losing Track of Your Budget. Even the most diligent budgeter can mess up every now and again. However, impulse spending causes you to lose sight of your budget and your financial goals: When you decide your budget is already blown, you might just keep swiping that card – and that’s a slippery slope.
2. Shopping to Be Happy
Raise your hand if you’ve ever gone on a mood-based spending spree. If you have, you’re not alone. Shopping can actually release endorphins in the brain, similar to other activities such as exercise, sex, and even eating chocolate. Unfortunately, like those three things, spending money in order to feel good can actually become addictive. Shopping to boost your mood creates a link between happiness and buying material goods – and it’s a link that can be seriously hard to break.
Ryan T. Howell, assistant professor of psychology at San Francisco State University, suggests checking your emotions before you buy as a way to stop emotional shopping. Before you hand over your credit card, think about why you’re making the purchase – because you really need it, or because you’re hoping to boost a bad mood?
Of course, if you can’t get your emotional spending under control, you may need professional help. Shopping addiction is real and can be difficult to break, but with the help of a dedicated mental health professional, you can learn your triggers and find coping mechanisms to help keep you out of debt.
3. Expecting a Miracle
Often, people who are consistently in debt mistakenly believe that righting their finances would take a money miracle. However, you’re never going to get out of debt by winning the lottery, landing a windfall from a wealthy relative, or having the world’s best-paying job simply fall in your lap.
What makes this way of thinking so dangerous is that it removes you from a position of control. When you’re hoping for someone else to swoop in and save you from your bad habits, you’re handing over the financial steering wheel and emotionally cutting yourself off from your debt. Of course, we all know that your credit, debt, and lifestyle belong only to you – and only you can solve the problem.
Instead of waiting for a miracle, start opening your bills and taking the time to make a budget. Set up payment agreements to stay current, pay all new bills on time, and remember that you’re the one who is affected when you’re stuck in debt.
4. Excessive Lifestyle Inflation
As you get older, you probably expect to achieve a better financial status than you had as a young adult. A better job, a raise, and even natural economic inflation can all affect your earning power. However, the difference between those who are always in debt and those who stay in control of their own finances is that the perpetual debtors buy more than they can afford.