Debt Management Answers For You…

We all have reasons why we spend. Aside from the necessities in life, We love to spend for emotional reasons as well. Just as some people ‘reward’ themselves or find comfort in chocolate there are many who spend money in response to certain emotions. Low self esteem is one of the major reasons we spend – it cam make us feel good. Like we accomplished something.

Or we feel a need to celebrate something. Have there been occasions in your life when something happened, where you immediately felt the need to go out and celebrate by either buying something or having a meal at an expensive restaurant as a fitting end to a project or accomplishment? I have! Yes, some things are worth celebrating.

People will buy material items in an attempt to feel better about themselves. Or to keep up the Jone’s.

It is not uncommon for people with low self-esteem to spend money on items that they think will give others a higher opinion of them. People buy expensive cars or yachts to boost their ego. Instant gratification.

Some people buy when they are happy and some people buy when they are sad. Remember, “who you are is NOT defined by money”!

Many people buy with no thought about the future. The fact is, they are going to have to pay off the debt that they have just incurred for the next year or so – or longer. After all, I’m not taking actual cash out of my pocket!

You plunk down that piece of platic, take the product and go on your way – I didn’t ’spend’ any money! Think real hard – ever enjoyed those feelings?

Impulse buying can be particularly dangerous. It’s generally for items we don’t need. The debt that comes with these types of purchases is something that you definitely don’t need and may possibly regret for a long time. I have made purchases andthen later thought; “why did I by that, I didn’t really need it”!

Define precisely why you buy and you will have a great deal more control over your financial future, with this understanding – the short term benefits that you get from your buying sprees are certainly outweighed many times over by the stress and worry of the financial burden they can bring with them.

I use a debit card for almost all my purchases. My bank offers a second free checking account, which I use for almost all my ‘indiscrminate’ spending. I ‘transfer’ money to that account as needed. This ‘forces’ me to look at my account before spending and ask myself; “do I really need that item or have the dollars to pay for it”. My main account I use for the bills – phone, utilities, rent, etc.

It may even be necessary to seek the help of a professional debt counseler to help you change those bad habits that are getting you into financial strife on a regular basis.

My dad, god bless him, was a man who had bad financial habits, which I learned from him. Mom was the person who had to staighten out those bad habits – she was the ‘accountant’ in the family. More often than not bad habits are learned from our ‘environment’ as we grow up. More often than not our gut tells us if something is right or wrong in everything we do, including our financial life. All we need to do is – Listen.

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