Some of you may find this concept a bit surprising, but the majority of us have quite the opposite mind- set; Afraid of spending money? More like afraid we are spending too much money! Financial phobia is very real and not only the fear of spending but anxiety of dealing with tough financial situations.
Sometimes these fears can be irrational and sometimes only natural during tough financial periods. If you avoid spending all together, and feel guilty making all purchases then you could in fact be an ‘under-spender’. Under spending definitely has its perks; you’re always covered in an emergency, and paying bills is stress free, yet ‘under-spending’ can also have a negative impact.
Do you avoid spending time with family and friends? Your excuse is always ‘I don’t have any money’ when you know very well you have the money sitting in your bank. Your family and friends probably believe your excuses as well as you do.
Although you should not be spending unnecessary amounts on leisure and luxuries, it is essential that you have a balance. Live your life; spend time and money with family and friends. Building memories is very important and you should not feel guilty spending money on these experiences.
You could be missing out on other important experiences as well. You may not invest your money into a home or a university degree because it’s too expensive. You may restrict yourself from seeing other parts of the world and experiencing different cultures.
Life is more than just money, so do not spend too much time worrying about your finances. The best way to ensure you are not over-spending is creating a realistic budget. Make sure you include some leisurely expenses or ‘wants’ in your budget to keep a healthy balance. A budget creates awareness of what you can afford and what you cannot, decreasing the likelihood of unplanned or spur of the moment purchases!
Disclaimer: The above information is general in nature and not intended to be financial advice. You should consider seeking professional advice before following any suggestions in this blog/website.