Can “Overspending” be Categorized into Different Types? ~ The International Finance

Thursday, 24 August 2017

Can “Overspending” be Categorized into Different Types?

What are the possible consequences of overspending? Overwhelming credit card bills? Loan defaults? Black marks on your credit report?

The evils of overspending are too many to count. And, the key to controlling your habit of overspending is to identify the kind of overspender you are. There are so many people who do not even understand that there actually are many types of overspenders – let alone figure out the kind of overspender they are. We are offering you a rundown of the types of overspenders out there so that you know who exactly you are and where exactly you can curtail.

Read on to explore.

You’re an impulsive and compulsive buyer

You know that you are a compulsive spender when your expenditures are not really backed by the solid reasons. Have you gone on to invest in a music system impulsively just because you have had a single bad day at work – and have conveniently forgotten to use it every day as well? You are buying items just to battle negative feelings but are not using them. Do acknowledge the fact that you are a compulsive buyer. They are offering you temporary relief but are definitely eating on your savings.

The Secret Shopper and the Consequences of Secret Shopping

You are the secret shopper. There are so many of us who have actually gone on to secure credit cards without informing our respective spouses. How many times have you bought electronic items just to hide them from your elders so that you don’t get chided for unnecessary expenses? Do know for a fact that you are a secret shopper. The consequences of these tendencies cannot be necessarily termed as financial. They can even go on to ruin your personal relations.

Are you a Deal Shopper?

You are the dealshopper. You want to make the most of the coupons and deals that are ubiquitous nowadays. The problem is they are ubiquitous. Do you think that it is almost impossible for you to keep yourself away from a deal? The problem is how exactly do you keep up with all the deals and discounts that are offered almost every day by some brand or coupon site or the other? You are a compulsive deal hunter — which is good if you need items. However, if you are spending even on discounted items when you don’t need them then you are actually doing more harm to your finances than what you can actually imagine! You are an over spender! It, of course, goes on to defeat the whole purpose of looking for the deals at the first place!

Spending is Plain Competition for You!

You are actually over spending because you need to keep up with everyone else. You are buying an expensive car just because it will look good at your driveway much to your neighbors’ envy and not because you need it. At the heart of your efforts towards stopping your habit of overspending is self-analysis. Understand why you are overspending and then go on to mend your ways. Making a budget and of course sticking to it every month consciously doing away with your tendencies is key to addressing this situation.

About Author

Amit Singh is a founder of Theinternationalfinance.com he share his immense knowledge of Finance in this blog.

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