How Are You Fooling Yourself Towards Spending?

Image from mymoneycoach

It is the first day of April and I am sure everyone knows what that means. It is April Fool’s Day. I am sure that whatever your friends are posting on Facebook and tweeting on Twitter, you wouldn’t believe it since again, it is April Fool’s Day.

Yet oftentimes, if not all the times, we fall prey to our own financial foolishness. Worst case, we decide to believe it rather than ignore it. These are the statements we often use to convince ourselves to spend aimlessly. And we embrace it not once but many times.

Here are three common statements we tend to use to fool ourselves towards spending.

I need this

Well do you? I really have no qualms if it is. However, if you keep satisfying your purchases that it is a need perhaps you might want to revisit your needs versus wants chart. What is scary is the fact that everything now boils to a need. In which case, you can’t seem to layout your priorities well. True that one needs shoes however if you will only be buying it for a particular occasion and you know you will never use it again, then that will become a want rather than a need. If you have been exploding your expenses just to fulfil your so called “needs”, you might end up in big trouble. Remember, to be careful with little expenses as these can add up and can cost you greatly.

I have to reward myself

You have been working in order to save up some money. You even put that extra overtime so you can get more. How is rewarding myself foolish? Shouldn’t I get a breather from time to time? Rewarding yourself for financial gains is one great motivational tool. And there’s absolutely nothing wrong about it. The concern is when we tend to go overboard with our rewards. For instance, if the goal is to save money or perhaps get out of debt, then rewarding yourself monetarily simply implies undoing all of your hard work. It would be far better to reward yourself only on the big wins. For instance, if you have cleared your credit card debt, manage to save this much and so on. Do not opt for a reward that can cost a lot in the process. There are in fact rewards that don’t cost money at all. Good examples are walks in the park, reading in your favourite spot and more.

I might not have this anymore

This I am guilty many years ago. I would always ask the salesperson if this is their last size or their last pair. Then they would tell me that indeed it is and they might not get this item anymore. They stirred the competition in me and the desire to bag this right now. If I shall wait, I might end up not having the item because another one already got it. Should that be the case, then perhaps ask yourself if the item is a need or a want. The important thing is you know and prioritize.

In case you find yourself telling these statements, perhaps you might want to step back and ask if you are fooling yourself towards spending. Remember that little expenses can hurt you in the long run. Be wise and don’t be fooled.

P.S To those doing the 52 Week Money Challenge, it is Week 14 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too. 

P.P.P.S I am also sharing my stock market secrets and information via these resources.