Carlos Legaspy, author of “Going for Broke” and CEO of financial firm Insight Securities, blames emotion-driven advertisements for much of Americans’ unnecessary spending.
“We are constantly bombarded by advertising that creates an emotional link to spending where the purchase creates an emotional ‘rush,’” he said. “Once that link is established, spending becomes unconscious, seeking an endorphin rush just like overeating and other compulsive behaviors.”
To break that unconscious link, try to approach each purchase rationally and avoid impulse buying.
“If there is something you want to buy, write it on a wish list,” Legaspy said. “Give it a couple of days, look at the list, and ask, ‘Is it necessary? Why do I want it? Can I afford it? Is there an alternative?’ Once you take time to come to a rational decision, you are more likely to stop overspending.”