Why You Spend Money Like You do and 3 Steps to Correct Your Bad Money Habits and Choices so You Can Have Financial Peace

Hello!

We are going to continue working on learning financial peace this week!

We often allow human nature to take control of our financial decisions, so it is time we address the causes of most money problems by identifying and replacing natural human behaviors and tendencies with healthy financial habits. We will identify consequences and practical steps we can take to reduce their harm to our finances.

You are the average of the five people you surround yourself with which means you are influenced by those people, but not only those 5. Keeping up with them refers to reactively purchasing consumer items or experiences we notice they have purchased.  Trying to keep up with the Joneses leads us to spend our limited resources on the unlimited items.  You tend to wear what they wear, speak like they speak, and behave as they behave.  Think about people you know-this is so true!  This can certainly lead to overspending if the social groups tend to sustain a more expensive lifestyles than your own income can cover.

Here is how you can fight this. First, make a list of your personal values. This is NOT dollar amounts or purchases But the  behaviors, beliefs, and achievements that matter most to you. With these in place, you can ward off temptations to overspend when confronted by the financial choices made by others. How? Because this list includes what is MOST meaningful in your life. This list removes the pressure anytime you start to wonder if you should have or do what the Joneses have or are doing. If you don’t find the purchase related to something on your list, it won’t bring you any lasting satisfaction. You will also want to set up your own spending plan based on your priorities and income. Prioritizing money does not mean going without, it is just shifting where you want your money to go.

Consumers can make purchase choices based on irrational reactions, such as the fear of missing out. Fear of getting left out of groups and their trends. Exclusion once meant getting left behind, alone, and fending for oneself. This fear remains a strong driver of consumer choices even today. The money problems arise when consumers make fear-based decisions and lack critical information. They tend to run from threats as fast as they can, not caring in which direction, as long as it takes them away from whatever danger they thought they saw.

If you don’t put this into action, you will be right where you were last year, so start now so you can lessen your financial stress this year!  There is still time to join our NO SPEND CHALLENGE group this month-the link is in the description.  Even getting in on a few weeks can help kickstart your savings!

Join our Facebook Group ->

https://www.facebook.com/groups/claimingsimplicity/

Email -> [email protected]

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Have a blessed week!

Monica