Why Do We Spend Money Impulsively?

[Spencer]

Each one of us had a time when they got money but made money mistakes by spending it impulsively on their wants or things that offer no value to them and later regret that when they became broke, why do we do that?

1) Scarcity Mindset: Most of us navigate life with a scarcity mindset, because we're not used to having money, our brain tricks us to be impulsive in order to maintain status quo.

2) Lack of Discipline: Sometimes we tend to be indisciplined, we don't follow our own rules, this can be changed by setting up systems or accountability measure to counter us when we deviate from our goals.

What more will you add to this?

 

[Highs]

Money is for spending and I believe human wants can be insatiable. We want to have more so we tend to acquire most of the things we see. You see everything looking useful especially when we have the money. Our mindset matters too, we need to be disciplined in our spending else we will end up lavishing. It's actually easy to lavish your money, it takes one irrational thought to lavish. Wow! I like that car, the next thing, it's in you garage. You didn't think if you are even driving those once in your garage, you didn't think if you need it. You just had to buy it.