Admit it…when you are about to make a remorseful purchase, you will rationalize your spending with a whole lot of things. Oh how lovely it feels when you’ve refreshed your whole wardrobe! But, it may not be wise for your finances in the long run.
From being stressed to needing to look good for a special occasion, here are 8 Excuses Young People Use To Justify Their (Unnecessary) Spending…
1. I HAD THE WORST DAY. I DESERVE THIS.
Isn’t it the worst feeling in the world when you’ve studied so hard for a final exam and failed the next day or when you’ve prepared so hard for a crucial presentation and choke the minute you went up on stage?
Certainly, it can change your mood negatively. Too boost your self-esteem you will buy the prettiest lipstick from MAC cosmetics or a new phone. 2. CELEBRATING MY GOOD GRADES, NEW JOB, or NEW APARTMENT
Since you have been promoted from your job, you better get a new coffee table, work dress, or a sparkly jewelry. You definitely feel that you shouldn’t look like old self. You want to embody an up-gradated version of yourself. Version 2.0!
3. I AM SO STRESSED. RETAIL THERAPY PLEASE!
That moment when you feel cannot do it anymore. You feel helpless and stressed with the situation you have been given. Hence, you will dive into retail therapy and drown yourself with material things to make you feel better. You may also swipe an expensive massage from your Visa Card. Ohh la la!
4. BEING AT MY PARENTS’ HOUSE SAVED ME ENOUGH MONEY.
After spending a week at your parents’ house you rationalize that you’ve saved so much money from eating home cook meals and using your their utilities. It helped you save enough money that you can now spend on the stuff you like.
5. SINCE I AM SPENDING, I MIGHT AS WELL GET THE BEST.
You feel that your money is more worth it if you bought nothing but the best beer, blouse, shoes, or concert tickets. After all, it is your own money.
Image Credits: Amélie Verleene via Flickr
6. THE “JUST THIS ONCE” PHENOMENON
You will be quick to purchase when everything is on sale and the item you like only has one size left…and it is your size! Just this once (you tell yourself).
Then you will feel that you have been eating too much processed food or instant noodles while you are living in your dorm. So, you will eat somewhere pricey but super nice for a change. Just this once.
7. I NEED TO LOOK GOOD FOR MY BF, GF OR MYSELF
The urge to buy an expensive article of clothing due to the constant need to look good for your boyfriend, girlfriend or yourself. Other than that, the person you dislike might be in the reunion party you will attend. You feel that it will be nice to show him/her how amazing you look now.
8. IT IS OKAY TO SPEND AS LONG AS I AM HAPPY.
Along with the previous excuses above, many have fallen prey to this statement: “It is okay to spend as long as I am happy”.
For instance, you went to a Game Console store with a single goal in mind—to buy the new GTA V XBOX game. But, you walk out the store with 2 games in hand (that is a 100% over your budget). At least you are happy!
Image Credits: Jason Devaun via Flickr
I hope that by knowing these excuses, you will be aware and more cautious in your daily spending.
One of Singapore’s favorite pastime is shopping. Since Chinese New Year is coming up, you may wonder where is the best place to get some cheap deals online.
Wonder no more! There are numerous websites that offer deals and discounts, but some of them are hard to navigate. Be aware of the websites that require subscription because you will receive tempting deals regularly. The good news is that…you can always unsubscribe and still use the site perfectly.
Also, some pop-ups that say “check discount code here before you shop” may not always be as rewarding as it seems. With that in mind, here are 4 Money Saving Websites That Work.
Topping our list is the ever-so-famous Groupon. Groupon makes women go gaga over their outrageously discounted luxury goods, bags, watches, beauty products, lifestyle services, and getaway deals. You can conveniently pay through for Debit/ Credit Card, Paypal or American Express.
Save up to 58% on your travel expenses though Home Exchange. It is a popular website where people rent out their own home and find a place to stay while they travel. You will get to choose from about 60,000 members in over 150 countries around the world. With this system, you will get a local feel and get to be toured to places that you will have never visited if you travelled by tour packages.
Similar to Groupon, Deal.Com.Sg by Ensogo lets you select from a wide variety of food or buffet packages, cheap hotel accommodations, travel packages, and amusement deals (e.g. Universal Studios Singapore). Also, you can conveniently pay through for Debit/ Credit Card, Paypal or American Express.
To ensure customer satisfaction and superior shopping experience, Ensogo handpick their offerings by working with highly reputable merchants and brands.
Social networking sites like Facebook and Twitter offer doors to access special deals by letting you follow the companies you wish to buy from. For instance, to get special deals on air fare and gadgets, follow Amazon.com or Virgin America on Twitter.
Follow Money Digest on Facebook to get cheap deals on various companies all over Singapore. Best of all? These methods are free.
When it comes to designer and high-end goods, we want to have what we cannot afford. And, a sales person with a snobby attitude only adds the extra kick of exclusiveness.
A recent study by the University of British Columbia’s Sauder School of Business showed that customers who are treated with poor service are more likely to buy something as long as the brand is adequately renowned and luxurious.
The study entitled “Should the Devil Sell Prada?” had its participants to imagine that they are interacting with different kinds of sales associates. Then, they rated their feelings (i.e., desiring to buy or not to buy) toward the associated designer brands. Interestingly, participants reported increased feelings of want after being treated badly.
The eagerness to buy the item increases as the desire to be exclusive and to be judge positively sets in. This goes to show that people want to prove that they are capable of buying the luxury item and that they are worth more than the salesperson might think.
Darren Dahl, the co-author of the prior study, said that the outcomes were based on a combination of factors.
1. RIGHT KIND OF STORE
Image Credits: angelo via Flickr
In order for the “snob effect” to work, a sales person must accurately represent an upscale brand. For instance, being arrogant in a Gucci store works more than being arrogant in a 7-11 store.
2. RIGHT KIND OF LOOK
Another factor in whether or not a customer is swayed by a poor customer service is the sales associate’s appearance. The sales associate must play the part of a high-end brand ambassador decked out with their own brand’s product/s.
Image Credits: Steve wilson via Flickr
As the song by Jimmy James called “Fashionista” goes: “you have to show a look, have a look, or give a look.” Faces should be pleasing or attractive.
Hence before buying a designer item, rethink whether you can really afford it, whether you really want it, and whether you are trapped in the service’s “rude spell”.
Some items are cheaper at certain times. Hence, with planning and knowledge, you will be able to save more money when purchasing throughout the year.
Here are the 11 cheapest things to buy from January to March 2015:
IN JANUARY
1. HOLIDAY ITEMS
Holiday items such as surplus or unused gift cards, Christmas decorations, and wrapping papers are now selling with discount in stores and in the Internet (e.g., eBay or Carousell). Buy now, as their condition and use will remain ’till next year.
2. LINENS AND BEDDINGS
Retailers offer huge discounts on sheets, towels, and blankets in January. But, keep an eye on it all year round, since retailers will put last season’s stuff on sale when new products come out.
3. VIDEO GAMES
Numerous video games go on sale after the holidays are over. Check out Steam and other gaming retailers for discounted prices.
4. COMPUTERS
Image Credits: Stefan Ledwina via Flickr
Like video games, companies offer discounts on older computer models to prepare for the upcoming release of new components and systems.
IN FEBRUARY
1. MOBILE PHONES
Some stores offer hand phone sales or even a buy-one-take-one scheme during Valentine’s Day. It may seem strange but it’s true.
2. WASHER, DRYER AND AIR CONDITIONER
During cold weather months, many appliance stores offer air conditioners at cheap prices. Also, old models of washer and dryers are being sold with good deals.
IN MARCH
1. WEDDINGS
Image Credits: Katsu Nojiri via Flickr
Tying the knot in this month means taking full advantage of the discounted prices on reception venues, catering, and photography. You must always be cautious of the venue’s weather.
2. CHOCOLATES
The surpluses from last month’s chocolates are sold for lower prices.
Image Credits: John Loo via Flickr
3. LUGGAGE
Retailers offer discount on luggage before vacation seasons of spring and summer arrives.
4. GOLF CLUBS
New models are coming out for the summer, so your local golf shops are pushing the old ones out. What’s more? Last year’s gold club models are much cheaper.
4. DIGITAL CAMERAS
Consumer reports and marketing analysis prefers grabbing digital camera in March and April, as sales are the best.
With multiple sources of influence, such as that new Dior perfume advertisement on the television, or your friend’s #humblebrag about her newest bag on Instagram, it is certainly exceedingly easy to fall into the trap of compulsive shopping.
Or perhaps, you may find yourself overspending due to your tendency to hoard stuff that you take a fancy to.‘See that dress over there? Well, it’s the last in stock, so you’d better get it if you like it, or it’ll be gone when you actually do come back for it.’ And as this train of thought follows you into every boutique store that you enter – well, it is hardly surprising that you find your arms laden with shopping bags a mere three hours later.
Another reason why you might be finding your wallet losing it’s weight way faster than it ought to be, would be your tendencies to engage in retail therapy. Indeed, shopping may be a rather effective way of dissipating any negative thoughts, as the joy of purchasing items that you have been hankering for may be sufficient to negate these unpleasant feelings that have been building up inside of you. However, as you pull item after item off their rack in pursuit of such short term gratification, you might find yourself chalking up a debt on your credit card that would merely return to haunt you in the long run.
Our penchant to spend uncontrollably is further compounded by the fact that online shopping is bigger and better than ever, and it’s ability to influence consumers like you and I, has expanded to an unprecedented scale. With such frequent ‘Black Friday free shipping promotions’, ‘New Year’s sale’ or ‘20% off flash sales’ notifications constantly being sent to our very inboxes, it may certainly be difficult to resist the lure of online shopping. Before you know it, you have just carted out yet another 3 items. Uh-oh.
Soon, you’ll be finding yourself with a bank account that has been run dry, with a closet that is bursting at the seams yet comprises largely of unnecessary buys, and a despondent heart that aches for the credit card debts you’ve accumulated – an absolute financial nightmare realised to its full potential in the remarkable span of only a few months.
Fear not, all is not lost! Just because you have found yourself ensnared in the ways of compulsive shopping, does not necessarily mean that it is impossible to extract yourself from this painful situation of cyclical impulse and regret.
Here are 5 ways to reign in that shopping addiction of yours!
See, we all have two types of friends – the supportive friend and the enabler.
If you’re genuinely out to save money and cut costs, shopping with an enabler is just about one of the worst decisions you can make – you’ll most likely end up splurging again, if not more! The enabling friend will probably encourage any compulsive shopping behaviour, instead of dissuading you from buying into unnecessary wants. Certainly, this is not to say that enablers aren’t good friends in general. They’re most likely avid shoppers themselves, who may be addicted to shopping just like you are, and the both of you will merely suffice to mutually enable if you shop together.
Instead, shop with a supportive friend – a friend who doesn’t gush quite as much about clothes as you do, or perhaps a friend who is always practical and grounded. While a supportive friend may not be the most engaging shopping buddy (they probably won’t rave about the newest fall trends or the latest designer shoes along with you), you can always count on him or her to ground you when you’re getting over your head (and your budget) while shopping. The supportive friend knows that you have a hard time controlling your spending urges, and forces you to think about whether you really need that item, or whether it is within your range of affordability. Certainly, by shopping with a supportive friend who is genuinely concerned and bothered by your spending habits, you’ll find that you will be able to cut down significantly on your monthly shopping expenditure. In other words, there’s nothing quite like a killjoy friend to cut your shopping frenzy short, and pressure you into making wiser spending decisions.
On a sidenote, if you’re simply too stubborn to be talked out of a spending decision, have your friend hold on to your wallet for the rest of the day. A little desperate in measure, but I’d figure this would work best when it comes down to the crunch.
2. Unsubscribe from newsletters and email notifications
For massive online shoppers like myself, you’ll find that unsubscribing yourself from the frequent newsletters and notifications that flood your inbox on a weekly basis does wonders in helping you to spend less. With the rapid pace of the online shopping industry, in which new collections and fresh arrivals are churned out relentlessly each week – or even every three days, it is exceedingly easy to fall into their marketing trap and spend beyond your limits. While you may not feel the pinch of taking your pick of just one item from each new collection, just buying 1 item each week from a single webstore would equate to 4 new wardrobe additions each month. Imagine the full extent of such an online shopping obsession if you purchase 1-2 pickings from a spread of several webstores each week! An online shopping addiction can be a scary reality indeed.
To cut down on online shopping, start by unfollowing your favourite stores on Instagram, unliking their Facebook page, and removing yourself from any mailing lists or email subscriptions. By cutting yourself off from these sources of marketing and promotions, you are effectively cutting yourself off from the irrational impulse to buy, buy, buy as well! After all, the urge to splurge certainly will not surface, if you do not even know about that latest flash sale in the first place!
It may be a painful process to remove yourself from these channels, as this inevitably leads to an unpleasant foreboding that you will be missing out on a lot – but trust me, if you are genuine in restricting your spending, this method will prove duly effective (or so I have indeed learnt from personal experience).
If you have a tendency to overspend, perhaps it may be timely to use debit cards in place of your usual credit cards. Given that every purchase made using a credit card is first paid for by your bank, it is terrifyingly easy to lose track of your spending and splurge over your limits. The consequences of such overspending will only come back to haunt you after each month, as your credit card bills arrive, and your bank demands for repayment. Failure to repay any credit card bills in full could lead to an accumulation of credit card debt at an astounding interest rate, and could soon snowball into a massive debt if not managed properly.
To avoid such an unpleasant situation, switch to debit cards instead, where your spending is directly linked to a bank account and expenditure is much easier to track. Witnessing your depleting bank balance when you overspend could also serve as a wake up call for you to cut down on your shopping immediately, in comparison to credit cards where you may be more tempted to spend beyond your thresholds given that your shopping is paid on loan which makes it tough for you to visualise the toll that your spending is taking on your hard earned savings.
If you are aware of your compulsion to shop, and that you have poor financial responsibility, making the decision to switch to a debit card would certainly be wise in the long run. Sure, you may not be able to enjoy as much rewards and additional perks or discounts when using a debit card, as compared to a credit card, but hey on the brighter side, at least you can be pretty sure that you won’t find yourself debt-ridden anytime soon.
Your shopping addiction may have arisen due to the emotional dependence that you place on it. Perhaps you used to turn to retail therapy as a way to assuage your fears, worries or troubles, but you grew reliant on shopping as a way to relieve all your emotional woes over time. This eventually culminated in an obsession to impulse buy whenever your psyche takes a turn for the worse – a costly habit indeed.
Instead, opt for a more financially savvy method of lifting yourself from an emotional low. After all, shopping is just one of many other ways that can provide emotional healing. Why not spend some time exploring alternative hobbies that can provide you with the same sense of escapism and momentary uplift that shopping does for you? For instance, running, watching television, knitting or reading are all viable alternatives that you can employ to substitute your compulsive shopping therapy habits, as they provide a source of distraction, and they each have a calming effect on the mind as well.
Find your own alternative past-times – surely you’ll be able to find a leisure hobby that is more productive and less expensive than shopping, yet able to provide you with the same amount of therapeutic help.
5. Pay for all your shopping using cash – and only cash!
It may indeed be tempting to seek the convenient way out and simply use a credit or a debit card to pay for all your purchases, as the swift checking out process of merely a swipe and go of your card makes shopping all the more breezier. While this is appealing in concept, the reality is that it is so much easier to overspend and get ahead of yourself while shopping this way, as there is no visible form of monetary exchange, and it takes a longer time for the painful truth to set in that you have entirely blown the roof off your budget – yet again.
Instead, opt for payment by cash for all necessary transactions. Watching the cash deplete from your wallet is more likely to ground you, and force you to face the truth that you ought to slow down on your spending. Furthermore, by choosing to pay for your purchases strictly using cash, it makes it so much easier for you to budget, as you can decide on the exact amount that you’d like to spend on shopping and food for the day.
A little rudimentary, yes. But the feeling of accomplishment that you will get when you finally realise that you have managed to curb your shopping addiction, and that you’re finally able to chalk up a decent set of unspent savings for the first time in several months, will certainly be well worth this slight effort.
Anna Agoncillo
MoneyDigest
