According to Experian’s annual study on the state of debt in America, the average American has a credit card balance of $6,375, which is up by nearly 3% from 2017. This is very alarming. One contributing factor to those numbers is the fact that most consumers have plenty of bad spending habits, especially when it comes to shopping. And no one can blame them. Shopping is fun.
If you’re like the average American who struggles with bad spending habits, then perhaps it’s time to make a change and eliminate those habits.
Bad Habit #1: Spending more than you make
One of the worst things you could do as a consumer is spend more than you earn. This can not only leave you with nothing to save, but also deplete your savings altogether, and may also leave you in debt. What’s worse is if you simply rely on credit just to keep up your lifestyle. You shouldn’t live a luxurious lifestyle if you don’t have the capacity or means to keep it up without succumbing to using credit to finance it.
Getting Rid of the Habit: Live within your means.
Bad Habit #2: Using debt to buy what you want
This is related to habit #1. Using credit just so you can buy that iPhone you really want won’t do you any good. It’s a slippery slope. You do this now and the next thing you know, you’re out buying the next one, simply because “you have to have it.” Save up until you have the money to buy the stuff you want. By the time you’ve saved up enough, the price will have gone down, or a better one comes along with the same price. And chances are, you’re going to take better care of the item because you saved up for it.
Getting Rid of the Habit: Delay gratification.
Bad Habit #3: Succumbing to payday sales
Stores often employ sales at the end of the month at the time when people have their pockets full because they have just received their paychecks. That is a good strategy for stores as people have a lot of purchasing power during these times. However, consumers often fall for this tactic as they’d be off spending their hard-earned money on things they don’t need just to take advantage of the sale. In effect, they’d have less disposable income during the month and would often turn to debt to cover their other expenses.
Getting Rid of the Habit: Take advantage of sales when you really need something then stock up on items you frequently use.
Bad Habit #4: Impulse buying, especially when emotional
Most people let their emotions get the best of them. They treat themselves when they’re happy. Or buy something to cheer them up when they’re sad. Or revenge-buy when they’re mad. They treat shopping as a quick fix to their mood at the moment. Don’t waste your hard-earned money on stuff you buy on impulse.
Getting Rid of the Habit: Wait for an hour or so before really thinking about buying an item when emotional to get rid of the impulse.
Bad Habit #5: Online shopping
This is not to say that online shopping is bad because it really is pretty convenient. But frequently scouring online shopping platforms for deals can be very bad as it builds up your urge to buy stuff you don’t really need, or maybe even want, just to score a deal. Plus, these platforms often employ tactics like jacking up prices then “discounting” them to look like a good deal and one-click shopping to give you less time to think about really buying the item.
Getting Rid of the Habit: Unsubscribe to newsletters and remove online shopping apps.
The thing about habits, good or bad, is that they’re developed over time and hard to get rid of in a short amount of time. Removing these bad habits from your life takes a good amount of time and dedication. But you can always take small steps.