Psyched Out Of Your Money

Use the internet to comparison shop. There is no reason to spend lots of money and time driving from one store to the next looking for the lowest price. You may end up having to drive back to your first stop. Save time and money by using the internet

It’s easy to overspend when you don’t keep tabs on how much you have. People will go for years unaware of their true financial situation because they’re afraid to look at what kind of mess they are in. It’s easier (temporarily) to just avoid it. They’ll pay their minimums and add new credit cards as necessary ignoring the growing debt total.

Not paying attention to your bills is a big mistake these days, when banks are doing all they can to boost their profits. Getting your credit card payment in late can mean a $25 whack on the wrist. Being sloppy with your bank account and bouncing a check can cost you around $30.

Keeping up with the Jones’ – Psychology plays a big role in our spending habits. We want to feel as successful as or more successful than those around us. We spend a lot of money to keep up that image. The reality is the neighbors probably can’t afford that new car either.

Buy in bulk: If you tend to buy a lot of a certain item, buy it in bulk whenever there is a savings.

Extended Warranties
Generally, they’re not worth the money. The only thing I now have a warranty on is my washing machine and dryer. If a new gadget or appliance is going to fail, research tells us it will do so during the manufacturer’s warranty period or long after the extended warranty has expired. That makes extended warranties, which can cost anywhere from $5 to hundreds of dollars, a big profit center for retailers and a pretty useless expense for consumers.

If you’re worried about a breakdown, take the money you’d spend on a warranty and stash it into a special savings account. If your item fails, you’ll have the money to repair it. If not which is more likely, in three or five years when everything’s gone well, you’ll have stashed away a nice little nest egg.

“If you want to feel rich, just count the things you have that money can’t buy”

Spending less than you earn: If you can’t do that, you’ll never be financially successful no matter how hard you work, how many hours you put in, how many promotions you receive, or how much money you make.

When you go out to dinner with four of your friends, it’s likely that at least two in your group of five are worried about debt, according to Bankrate.com 2008 Financial Literacy Series. Sixty-one percent of Americans have some type of debt, excluding mortgages. The type most frequently cited (by 45 percent of those surveyed) is credit card debt.

When it comes to attitudes about debt and saving money, Americans seem to exhibit a split personality. Ninety-one percent say they believe that debt can be controlled by disciplined saving and spending—yet 72 percent also say that they believe debt is just part of modern life and difficult to avoid.

Surprisingly, only 10 percent of Americans who carry debt say they are “really worried” about the amount and aren’t sure how they’re going to pay it back. The bottom line is that about 25 million working-class households have to deal with unmanageable debt. Experts warn that with the current economic crunch, people should be taking a good, hard look at what they owe and coming up with a plan for whittling it down.

Your impulse spending is being maximized through the use of visual displays, Muzak tapes and even mind altering scents.