Consumerism is all about spending. At least, that is what you can easily conclude when you observe how society function and act in modern times. We are all encouraged to buy things if we want to live a more convenient lifestyle.
At first glance, there is nothing wrong with that. However, if you factor in the purchase practices of most consumers you will realize how it leads to financial problems in the future. The society that we live in today believe that debt is a necessary risk that we must take in order to enjoy life. That is the mentality that most of us grew up with. We got a really big realization when the recession hit a few years ago and we were faced with mountains of debt and a reduced income. For some of us, the income was totally wiped out.
To make sure that we never have to go through the same financial hardship in case another crisis happens, here are some consumer habits that you need to eliminate.
First of all, you have to stop justifying your wants. We all try to justify how a more expensive car will be cheaper in the long run because it will take a long time before it breaks down. There may be some truth to this but there are second hand cars that have very good owners and thus are well maintained. Or you can justify expensive purchases with the mentality that you are only doing it “once.” To tell you frankly, if your restrictions accept the “just this once” attitude, then you can expect that it will keep on happening again and again.
Our credit card purchases is another habit that we must eliminate. This card, although it means well in protecting your cash, allows you to purchase way beyond your present capabilities. It is not a good idea to rely on a future income that has all the possibilities of not arriving. The better mentality to stay away from debt is this: if you cannot pay for it in cash, then do not buy it.
We also have the bad habit of using shopping as a therapy. Financial experts believe that buying things when you are experiencing a high emotion is a no-no. Whether it is a positive or negative emotion, it will still cloud your judgement. You may think that retail therapy helps but on the contrary, it will make things worse – especially once you receive your credit card statement.
Caring about what people say about you is a mentality that affects your spending habits too. Just because everyone is clamoring for the latest gadget, it doesn’t mean you should follow. Again, if it is not within your budget, do not get it.
In case your reading of this article is too late and you already have accumulated quite a debt amount, there is hope for you yet. Debt consolidation is a great way to solve your current debt problem. If you use debt management, the debt counselor will help arrange for your credit cards to be frozen so as to help you curb the temptation of using them.