I know why people are always broke

[disneysteve]

Yes, I have discovered the secret to why so many people are living paycheck to paycheck and buried in debt. Why they can't make ends meet and can never get ahead. I've done extensive research that mainly consisted of listening to my office staff talking every day, and the truth has become clear. Are you ready for me to reveal this to you?

THEY SHOP TOO MUCH!

Yep, I've determined through rigorous investigation that the more people shop, the more they spend. All day long, I hear them talking about what they have purchased, what stores are having sales, what store they need to run to on their lunch break, what remodeling projects they have undertaken at their homes and what they've found on craigslist lately.

I will admit that they sometimes find incredibly good deals, but as I've often said, it isn't really a good deal if you don't need it.

Not only do they scour the internet for stuff and review the weekly newspaper ads, their choice of TV shows even ties in to their shopping habit. Come into my office and chances are the lobby TV will be showing HGTV and a home renovation show or something similar that does little more than encourage viewers to make similar costly upgrades to their homes.

I suspect that they are not unique and probably fairly represent the population in general.

Compare this to me. I hardly watch TV and when I do it is typically either for the news or a dramatic show I enjoy like NCIS, Criminal Minds, etc. About the only time I go to an online shopping site like ebay or craigslist is when I'm looking to sell something or there is something specific I need to buy and I'm searching for the best price. I NEVER go to browse. I have gotten to the point where I really can't stand going to the mall. On the rare occasion when I do need clothing, I usually head to the outlets. Although we've been in our home for 17 years and there are things that could use updating, we aren't doing it because we don't care to spend the money right now. My wife does more recreational shopping than me but compared to the average American, she does very little and rarely if ever buys anything I'd consider frivolous.

So there it is. Spend less time shopping and you'll spend less money. Perhaps I should write a book.

[Jennsnoopy]

I think this is very true. When DD immunity was very low in the first part of treatment I did not go to any stores For fear of bringing back germs. Husband went shopping for grocery essentials at 10 at night to avoid crowds and he only bought what was on the list (he is not an impulse shopper). During that time we saw an a,zing increase in savings!
Unfortunately, when DD immunity returned, I started buying her and her brother things because i felt guilty. You can see it in the change in our "expenses". I need to get back to no buying toys. And you are right, even if it's a great deal, if you don't need it you are wasting money (and cluttering up your house)...

[Jennsnoopy]

Sorry double post.

[bjl584]

Yesterday after work I went to the gym, then I mowed grass. No shopping for me. It is something to people watch at the mall or the store though. People have bags and bags of stuff that they probably don't need. Carts overflowing with junk. It's amazing really.

Steve, if you do write a book I would like a signed copy.

[clintdavis]

There's a lot of people out there who are Looking Good But Living Broke!

[MonkeyMama]

Agreed.

I have observed this on Facebook. With that Four Square thing? The more broke the friend, the more time they spend at Target, Starbucks, restaurants, etc. I can easily go 7 days without stepping foot in a store (or making an online purchase), in comparison. When I buy something it is usually food or gas.

I personally watch TV, but nothing that has to do with spending money. I can relate to your comments though because a knee-deep friend in debt was just telling me she watched HSN or something like that. Everyone else thought it was harmless - I told her to turn it off. It can't be healthy to immerse yourself in that materialistic mentality while trying to get out of debt. Even if she "never buys anything." I Can't see what's remotely interesting about it if I wasn't going to buy anything. It's just feeding into the materialistic culture. Ooohing and aaaahing over all the shiny things. Ugh!

[twest]

Great post Steve. My office buddies are the exact same. I have one coworker the parents pay the house payment, utilities, and car payments, and they still never have money because of all the shopping. It is really sad. Everytime they say they are broke I just want to scream "you shop way too much"

I didn't think of the HGTV being a problem, but when I look back at the time I used to watch it more it did make me want to do more to the house in terms of decorating. So thank you for sharing on that as well. Tonight when I watch tv I will have to think of any shows I watch that may promote me spending money.

[cypher1]

Also agree, but its not really an eye opener. A lot of us (NOT everyone) is trying to keep up with the Joneses. Or as I like to say "Fake it till you make it."

Shopping sucks. I hate going to the store unless I truly need something, in and out is my policy. Having worked in Best Buy many years ago, hasn't helped for a positive attitude. I don't like being bothered every 5 minutes at a store, and try to avoid crowds/lines. Otherwise I do a lot of shopping online or CL.

However, I'm just as guilty for shopping for stuff I want. I've been borrowing my friends miter saw on and off for the last 2 years. I've been scouring CL for a specific Dewalt miter saw, and about to just splurge and buy a new one if I can't find a deal soon. Purely a want=guilty. Saw and 26gal minimum air compressor for garage are summer purchases. Justifying compressor also for purging sprinkler system instead of paying 60-75 year for the service.

[terces]

Totally agree DS.......I'm fortunate to be one of those people who hates shopping or going to the mall. The only time I venture there is when I need something. The other day I was in an accessory store looking for a scarf. Women were frantically filling their baskets with trinkets. Did I see things I like...of course.... Did I need them...no. Actually walked out empty handed cause they didn't have exactly what I wanted.

[GREENBACK]

Next time you're at a retail store look around at the people shopping. It's impulse buying out of control. Of course the stores create a ripe atmoshere for this(can't blame 'em). A "sale" is like a drug to many people. They give little consideration for needing an item. The fact that the price is artificially inflated and then 30-50% or more is taken off that price makes it seem like a super deal . Mall stores are notoriously bad for this.

[snshijuptr]

So a girlfriend is having her baby shower and registered at Babies R Us. I was floored at the ridiculous prices and the number of things she wanted. $150 for a wood high chair! $100 for a video baby monitor! Really!? I remember when I registered for my wedding it felt the same way. Well why not register for the most expensive stuff? Of course I returned to the store with 5 shopping carts full of returns. There is just not enough room in my apartment for that much stuff.

[disneysteve]

Originally Posted by GREENBACK

A "sale" is like a drug to many people. They give little consideration for needing an item.

They also give little consideration to whether or not the "sale" is even a good deal. I see this with the grocery stores all the time. One chain will advertise a "10 for $10" sale and when I scan the list of items, I usually find several that are always less than $1 each at the store where we normally shop. Still, that doesn't stop people from filling their carts with those "sale" items.

[MonkeyMama]

Originally Posted by twest

Tonight when I watch tv I will have to think of any shows I watch that may promote me spending money.

The thing that also always gets me about TV is how most sitcoms (well, all TV, these days) show ridiculous lifestyles way out of the reach of the people they are portraying. I think with my own education and experiences, I know these are ridiculously unrealistic lifestyles, so I tune it out (& roll my eyes a lot). But, I do think it affects people who don't know any better.

[disneysteve]

Originally Posted by MonkeyMama

The thing that also always gets me about TV is how most sitcoms (well, all TV, these days) show ridiculous lifestyles way out of the reach of the people they are portraying.

That's very true and is a very subtle way in which TV encourages people to overspend - "Well, if those guys on that show can afford all that stuff and they are barely working, surely we should be able to have that stuff ,too."

Also, product placement in TV shows and movies has become big business in recent years. I'm old enough to remember when products used on TV and in movies were all generic no-name items made just for TV/movie use. You never saw anyone drinking a Coke or a recognizable beer or using an identifiable computer. Today, product placement is everywhere.

[mcfroggin]

So if I shout "FIRE" in a shopping mall, I should be given an award for helping Americans save money? That sounds like good logic to me.

[LivingAlmostLarge]

ding, ding, ding. Trust me staying at home makes a lot of people men and women shop. I hate shopping, but with a kid I find myself enjoying strolling the aisles of a grocery store or mall. But I never buy. I am definitely not big on spending. But I like malls since we live where the weather is bad.

And my DH and i watch sports on TV. Well he does, I surf the internet. advertising is rampant, but I bet not as much as HGTV shows and stuff.

[snafu]

Totally agree DS, shopping is often used as entertainment. I've often wondered if folks had to hand over cash instead of plastic, would they modify what they were buying. I used to teach customer service for a large department store chain and was gobsmacked at how much stuff the staff bought!

[investingnoob]

Agree!
That's why I try not to enter a mall, because I usually can't go just to "browse". I always end up finding something that I feel I "must have"..and I kick myself after, thinking...if I never entered I never would've seen the thing I wanted..

[kork13]

STEVE!! YOU'RE A GENIUS!!!

Not really much to add that hasn't been said already... On those infrequent occasions that I go out shopping (and actually intend on buying stuff), if I'm not careful it really is easy to just buy alot of unnecessary items. The best thing someone can do while shopping is to step back and ask "Do I REALLY need this? Am I actually going to get good use out of this?"


P.S. When the book comes out, I want a signed copy too.

[rob62521]

I would have to agree with many of you...going into a store and seeing "sale" makes people lose common sense. We have a friend who has admitted to having a spending problem, but he won't stay out of the mall, the stores, etc. and the on-line shopping sites. He said it is a hobby. I'd say recreational therapy isn't good for this person. Don't get me wrong, we buy things, but we have interests and hobbies that don't include buying something all the time...we read, talk with friends, go to church and do activities, garden, email and read blogs and forums, and watch a lot of financial programs. Boring??? Possibly. But we have some money in the bank and feel the temptation to purchase things we don't need isn't there.