Are you still trying to kick your addiction to spending?
When things went south for the U.S. economy, there were many of us who made a pledge. We were going “back to basics.” We were going to be thriftier and live frugal lifestyles. We were going to start saving and curb our spending.
But the urge to splurge may be too much for most Americans.
Despite the fact that unemployment remains high, and the Labor Department said this month that payrolls decreased in 28 states…we are still starting to spend more and more!
You’ve probably heard stories in the news, and even on this blog, about Americans getting rid of their debt. But the sad truth is that many of us are not writing personal checks to pay down credit card debt and mortgages. Instead we are defaulting on our loans!
According to the credit card comparison site CardHub.com – while outstanding credit card debt fell by more than $93-billion in 2009, $81.6 billion of that was due to people defaulting on their payments.
In November, statistics showed consumer spending rose for the fifth month in a row. It’s true that we are in the midst of the holiday shopping season, so you might expect spending to be on the rise.
But consider this…the average American household will spend $714 on Christmas gifts this year compared to $638 last year. That’s not a sign we are curbing our spending.
“People are going through frugality fatigue,” said NDP Group chief analyst Marshal Cohen in an interview with Newsweek magazine for an article title The Urge to Splurge is Creeping Back.
Many other economic experts agree that Americans are finding it difficult to kick their shopping habits. We are a nation of consumers. The desire to get what you want, when you want it is pretty strong. And it’s so easy to overspend when all you need is a magic plastic card that lets you swipe and buy now so you can pay later.
A recent Gallup poll of consumers found that, despite the uptick in spending, nine out of 10 people surveyed claim they are still keeping an eye on their personal finances. But TD Ameritrade’s 2011 New Year’s Resolution Survey also found that 27% less people plan to try and save money in 2011. However, 67% want to reduce stress and focus on having fun.
There’s nothing wrong with that. But hopefully, you can find a way to relax and enjoy yourself without spending money you don’t have. That’s only going to create more stress later on.
There are also some factors in life that we – as consumers – cannot control. Health care and education spending represent two of the biggest increases in consumer spending this year. Those are areas that most people just can’t cut back on. Plus, rising commodity prices are making it more expensive to fill up the fridge and the gas tank.
That’s why it’s more important than ever to have a plan for your finances. Use that check transaction register you got when you decided to order checks from Check Advantage. That will help you determine your monthly expenditures.
Learning to live below your means is tough. So is quitting any sort of habit – from smoking cigarettes to biting your nails. It’s going to take hard work and discipline.
But if finding financial freedom is important to you – you’ll stick with it!
Image Credit: thadz
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