The tighter my money, the more I want to spend
I've been doing a lot of research about budgeting, and one of the benefits - according to experts - is that using a budget can reduce impulse spending.
I've not found this to be true. In fact, the more I try to control my spending and the less money I have, the greater my impulse to splurge.
Psychologically I realize that this is a self-destructive behavior. It sabotages my carefully constructed budget, may cause payments to be late, creates tension between me and my spouse, and sets me up for stress and anxiety.
So why do I still do it? What is it about dropping $50 on books and stationary at Wal-Mart that feels better than making an extra payment on my VISA? Why do I take the family out to eat at Red Lobster, knowing that $75 has to last until next week’s payday?
I suspect my actions are a passive-aggressive form of rebellion. I hate not having enough money, especially because six months ago we had money to squander. Now, every cent has to have a purpose.
What I’m realizing, perhaps, is that our budget is too restrictive. Sort of like a diet with too few calories. After a couple of days of tuna and carrot sticks, you say, “The heck with this,” and eat an entire cheesecake.
Maybe the cure for my impulse spending is to loosen up the purse strings instead of further tightening them. Maybe if I tuck an extra $20 in my wallet, knowing I can spend it on anything I want, that will take off some of the pressure. Then, maybe, I can actually stick to my budget.
All I know is a $20 here and there has got to be a lot less damaging than $50 here and $75 there!
What do you think?
Technorati Tags: Money Smarts
Hi MK same here...the more I realize that I have lesser money so I should spend less, the more my craving for spending increases. :(
There's nothing like a little retail therapy to cure budget stress! Temporarily at least....until the bills come due and there's nothing left to pay them.
I've found that even $5 - budgeted of course - for any impulse that comes along goes a long way. Knowing that if I've had a rough day I can swing through Starbucks and get a double-shot mocha, hold the guilt....that's all it takes to prevent the "I'm too stressed out to cook, and it's been a long day....let's go out for dinner" syndrome.
I'm still splurging, just spending $5 instead of $50.
Here I thought it was only me!!!
I had also allowed myself that $20 as well. What also came to my surprise was that it stayed in my wallet a lot longer than I thought it would. Just knowing it was there, waiting, and without guilt when/if I used it did break that psychological tension.
I highly suggest the practice.
Sometimes it stayed in the wallet for weeks. Other times it just slipped away gradually. My trick to this was never to replace or add to the $20 until ALL of it was gone. Just a heads up. and Sans the guilt
I'm so glad that I'm not the only person who struggles with this. Nothing like a little guilt on top of all that worry and anxiety!
I'll report back how my new strategy works.