http://chamberlainfp.com/2010/04/think-you-might-be-an-over-spender/
Senior Spectrum – March 23, 2010
Have you been concerned about your shopping habits? If you think you may have been spending more than you can afford or have compulsive shopping tendencies, you need to look carefully at how you spend money and the consequences of that excessive spending.
The following questions can help determine if you have compulsive spending habits.
• Do you buy items you do not need?
• Do you shop when you are depressed?
• Are your closets stuffed with purchases you never use?
• Do you hide your purchases so that your spouse or family won’t find them?
• Do you lie about how much money you have spent?
• Do you avoid talking to your spouse about money?
• Do you feel guilty after you buy a lot of items?
• Do you feel uncomfortable if you don’t have your credit cards with you?
• Do you borrow from savings to pay bills?
• Do you use one credit card to pay another?
• Do you think or worry about money often?
• Is it getting harder and harder to pay your debts on time?
• Are your payments late or written for less than the amount due?
• Do you charge daily expenses like groceries and gasoline?
If you have answered yes to two or more of these questions, your spending habits may be out of control. Compulsive shopping can be a serious problem and can have serious ramifications not only to you but to your loved ones as well.
When you over spend there are fewer dollars to go elsewhere such as saving for your next car, kids education, vacation, or saving for retirement.
To get a handle on over spending, take a realistic look at your finances and decide how to make changes. It would be wise to decide how much you can allow yourself to spend in a given area. This could be called establishing a budget but I hate using the B word. Call it a cash flow projection. This can be done with pencil or paper, on a computer-spread sheet or in a computer program like Quicken. Another option is Mint.com, which is an on-line application that tracks spending for you.
Consider limiting your shopping trips. Do not go shopping as entertainment. It may help to wait several days before you make a purchase. A great idea is to make a list of what it is you need to buy, stick to that list with no exceptions. Another hint is to shop fast. The less time you spend in a store, the less time you have to buy. In extreme cases consider cutting up your credit cards.
Chances are you have more than enough stuff. Look around your home and closets and take an inventory of what you already have. Being busy can help keep you out of stores or shopping online, so take a walk, plant some flowers or start a new hobby. Have a garage sale or list items on EBay or Craigslist to sell what you do not need and pay down your debt.
Understanding why you are spending so much money is important if you desire to stop the excess shopping. Is it because of stress, low self-esteem or loneliness? To find out the reasons and to get help, consider joining a self-help group such as Debtors Anonymous (www.debtorsanonymous.org) or talking to a professional financial advisor or credit counselor.
