I had a rich friend. Not super-rich, but yeah, he used to earn more than an average person. He owned a big house, two-three sedan cars, and everything else you can imagine a rich person to have.
However, he was also a notorious spender. He didn’t think twice before spending ten or ten thousand dollars. Everyone cautioned him to keep his spending under check. However, he didn’t pay attention to anyone. As a result, he went from being rich to broke within a few years. He lost out on his home, had to sell his cars, and was even under heavy debt.
The last time I heard, he was barely managing to survive, living paycheck to paycheck in a small house in the suburbs.
The moral of the story is that no matter how much money you have, if you can’t control your spending, you’ll end up broke. Unfortunately, not many people realize they have a problem with spending. They think they have their spending under control, whereas, in reality, they don’t.
So, here’s a look at five tell-tale signs that you are out of control with your spending.
You Justify Your Spendings, No Matter How Useless They Are
You have a reason for every purchase, no matter the (un)necessity. “My phone was one year old” “But there was a 10% discount” “It is a limited edition” “It’s the latest in fashion.” You prove that every purchase was warranted and have the perfect justification for it (in your head).
You Spend More Than You Earn
Familiar with the phrase, “Live below your means”? If not, then you should be. If you spend more than you earn, you are living above your means. This can deplete savings and even put you under enormous debt if kept unchecked.
Your Credit Card Bills Shoot Through the Roof
“We buy things we don’t need, with money we don’t have, to impress people we don’t like.” We couldn’t have summed it up better. In today’s flex culture, we buy things on credit even though we aren’t financially capable of paying for them later.
If you have credit cards, we suggest you discontinue using them or get a card with a lower credit limit to contain your spending.
You Are an Impulsive Buyer
One of the significant signs that your spending is out of control is that you keep buying things that you lay your eyes on. And that too instantly, without any thoughts. This has become a significant issue with online shopping, as you can buy things with just a few clicks and get them delivered instantly without even stepping outside your home.
You Hide Your Purchases From Others
People with addictions will go to extreme lengths to try to hide it from their loved ones fearing the consequences. They don’t want to hamper their relationships yet can’t control their habit. People who are addicted to spending money are no different.
If you do the same, then we have bad news for you!
Conclusion
These were our picks for the apparent signs that you are out of control. However, this list is non-exhaustive. There are many other ways that can point to your uncontrollable spending habits.
If you think you are overspending, try to control your urges. You wouldn’t want to end up in a position like my friend, would you?