Today I Learn… I make a point of learning something new everyday. This is what I learn each day

1, Jul 6, 2011

Overspending, Debt and Impulse-Control, Part I

Filed under: Money — admin @ 12:37 am

I never let go an article on financial discipline without calling my children’s attention to it. “Overspending: 4 Lies That Lead to Debt Problems” by Dan Kadlec Monday, May 9, 2011. I like the part when the author raises it to the level of impulse control and self-discipline. Indeed, this is all we need when it comes to buying the do-not-needs.

The problem with those heavily in debt folks is “they have unrealistic expectations for how material things will make their life better.” The author quoted a study done by marketing professors at the University of Missouri. The study summaries four types of unrealistic expectations common to overspenders, who buy things they don’t need:

(1) “It’ll make me a better person: Many overspenders believe a purchase will literally change them into a better person. One woman in the study was certain that cosmetic dental surgery would improve her looks and quickly render her more confident and successful.”
Nothing is more erroneous that this. We know that’s not how people become successful and no better person is made of any materials. I have emphasized to my children that they will gain confidence in themselves when they excel in something. No fine clothes nor rich decoration can disguise the stupidity of an empty-headed person, which nobody want to be known as.
To be continued…

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