Recently, I spoke to a client (a teenager) on her spending habits. This is her description on how she feels on a monthly basis:
Countless research and poll have shown that it is much easier to overspend with this mode of payment because when we sign off the plastic, we do not experience (visually) that we are spending- our bank account value does not decrease, the cash in our wallet remains as it is. Sometimes, we are even lured into a false sense of security of having more money, for example in the case where friends return you their share of the expenses charged to your card – but which becomes money which you eventually spend (on yourself). Sometimes, we convince ourselves that we are enjoying the rebates/discounts of the credit card company – which is all true until when the bill date draws nearer and we realise that we have spent more than what we should have.
Then, the dread comes. The fear of paying the bills is not uncommon. A poll conducted by gobankingrates.com (US site on interest rates of financial services) shows that of the various financial tasks, people dread paying the bills the most.
This vicious cycle is more than just an emotional roller-coaster. The cycle itself does not promote good habits because we spend before we save. What we really need, is to cultivate a healthier habit. And here are 3 steps that will lead you to that.
Continue reading 3 Steps to Liberation (breaking bad money habits and starting better ones)
CFP, representing Financial Alliance 
