How to identify whether you spend money irrationally.

[TOZZIBLINKZ]

It is possibly true that an individual can spend money without knowing whether he or she is spending it on the right purpose or possibly on the wrong purpose. Such individuals are called indecisive individuals, and when an individual spends money irrationally that simply means that he or she is spending it without reasoning. The main influence of irrational spending of money towards an individual is possibly because he or she is influenced by peer pressure or environmental influence. In the case of peer pressure, an individual could possibly see his friends and peers buying a brand new car and the car they've bought wasn't really there need or want but instead they are just merely following the trend of new gadgets and appliances, you on the other hand feeling influenced by this can totally join in buying a new car as well in order to feel among. This is definitely what we call irrational spending influenced by peer pressure.

On the other hand, environmental situations can also lead an individual to spend money irrationally, environmental situations usually come in the form of newly advertised products and services which somehow could be very costly or expensive. Without rational thinking an individual good thing that this product being advertised are good and can possibly buy them. Basically, these are the two ways to look out for if you want to know whether you irrationally spend money. Possible ways to fix this, is by always preparing a budget of your needs and wants.

 

[Etini]

It is called erratic spending. It is a situation where a person spends money without careful thought. It could be very damaging when someone just wakes up and impulsively spends money. That person is hurting his/ her financial life and growth. I met a person that used to spend money just because he feels the butterflies tingle in his stomach. He only stooped when he realized that his finances were going down every day.

We have the 24-hour rule that advocated that you should postpone the purchase of anything till after 24 hours since the idea to purchase that thing occurred to you. I have tried it and found out that some of the things we spend on are not worth it at all. We are just carried away by the heat of the moment. Anyone can try this 24-hour rule. It has helped a lot of people to control their financial life.