Plenty of us overspend each month. Some of us overspend so much and so regularly that we end up with overwhelming credit card bills, missed loan payments, and black marks on our credit reports.
One of the keys to gaining control over unhealthy spending habits is to recognize why you spend too much.
There are different types of overspenders, and they break their budgets each month for different reasons. Recognizing those reasons can be the first step in fighting back against your bad financial habits.A growing problem
The numbers from Northwestern Mutual’s 2017 Planning and Progress Study show that many U.S. residents have a spending problem. According to the survey, nearly three-quarters of U.S. consumers are struggling with debt, owing an average $37,000 — not counting their mortgage payments. (See also: 6 Old School Tools to Help You Stay on Budget)
The survey found that, after paying for necessities such as housing, food, and transportation, Americans spend about 40 percent of what’s left every month on discretionary expenses like travel, hobbies, and entertainment; they spend only an average 33 percent on paying off debt.
What type of overspender are you? The odds are that you’ll recognize yourself as one of the following.
1. The compulsive spender
Do you find yourself buying a new fitness tracker just because you’ve had a bad day at work? Does an argument with your spouse send you fleeing to the clothing store? You might be a compulsive shopper, one who overspends as a way to tamp down unwanted negative feelings.
You might not even use the items you buy — just spending money on them is enough to provide you with temporary emotional relief.2. The deal shopper
Do you find it impossible to turn away from a…
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