I know why people are always broke

[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.

[TheMom]

Yep, totally agree. I have a friend who lives about 2 hours from me and every couple months we meet in the middle for dinner. But rather than just sitting there for a couple hours, we end up at Target walking around after eating. There isn't much else in between us, so it works. At first, it seemed like I always had something to buy, and rarely was it something I needed. Now, I make sure I have my Target shopping list with me so I have things to buy that I actually need. I do part of my grocery shopping at Target, so I just do it when we're together that week and it saves me another trip to Target, plus gives me something to buy on our expedition.

[buildmybudget]

It's not JUST the shopping though, it's the lack of concern regarding what the shopping does to their budget long term. I wonder how many people would still recklessly shop if they knew they wouldn't be able to pay off what they just spent for six, eight, or twelve months. I also wonder, if any of these individuals spent any time considering how much money they will need for retirement, would they still shop compulsively. But this always returns to being educated...and most people aren't in the personal finance arena. I think shopping is a symptom for the real problem, lack of education.

[disneysteve]

I wonder how many people would still recklessly shop if they knew they wouldn't be able to pay off what they just spent for six, eight, or twelve months.

I really don't think this matters to many people. They know at the point of purchase that they can't afford the item. They know that they are putting on their credit card and won't be able to pay the bill when it comes. But they buy it anyway. Otherwise, nobody would ever carry a balance on their card. I don't understand how anyone can do that but millions of people do it every day.

I also wonder, if any of these individuals spent any time considering how much money they will need for retirement, would they still shop compulsively. But this always returns to being educated...and most people aren't in the personal finance arena. I think shopping is a symptom for the real problem, lack of education.

I think that's true to some extent but there is more to it than that. Even folks who are well-educated in finance, like myself, can find things they "need" when mindlessly browsing in a store. I've bought things that I never would have gone out specifically to buy had I not stumbled upon them while out casually shopping.

[skydivingchic]

I agree with much of what has been said on this thread. I'm not much of one for recreational shopping, though there are a couple stores that I generally try to avoid unless I need something specific because I know I will find something I "need" if I go there. REI for example - love that store, but avoid it whenever possible. It is a rare day when I go anywhere just to look.

A note to those trying to avoid advertising on the internet. I run Mozilla Firefox with AdBlock and NoScript. I rarely see an ad these days and I do spend a good bit of time on the internet. Highly recommend it.

[Like2Plan]

I used to enjoy shopping when I was younger. For some reason shopping has become less enjoyable as I have gotten older. One thing is the time it takes. Another is the fruitless searches for items for which I am shopping (and wasting time in the bargin). As I have gotten older, I need fewer things.
Now, I have gotten to the point where it is rare for me to set foot in a grocery store because I detest shopping so much (lucky for me, my DH likes to shop ) DH only buys what is on his list and since we have reduced our carb intake, he mainly shops in the produce section.
I hardly ever go to the mall to shop anymore. I usually give cash or gift cards as gifts or I'll order something on the internet.
I agree with DisneySteve that I save a lot of money by just not going into the store.

[Pansori]

Most of the people I know are in their early to mid 20s, and their guilty pleasure hands down is eating and drinking out. Financially I cannot keep up with my friends, because their idea of a good time is going from one bar to the next. Even at work instead of hauling a lunch I know people who eat in the cafeteria every single day, and it is not cheap. Then our job does this thing where they bring in representatives from local businesses to sell their goods (strategically scheduled to come in the week we get paid). No doubt we live in a materialistic, live for the moment society, spurned on by the idea that it is not about want but need.

[PatientSaver]

the tagline on my blog here is simple: "Save more, spend less."

If you follow that prescription, Dr. Steve, you'll never go broke.

[SteveBlissLaw]

IMO people are always broke because the majority live for today. no one thinks about the future

[cschin4]

Steve = i discovered this too. And, it is funny but people really don't get it. More money doesn't help because people simply upsize their expectations. You start out being happy with some car beater. Then, you make a bit more money and you buy a bit nicer car and a bit nicer home and a bit nice clothing, etc. And, then people believe that shopping for "deals is the way to go". But, in reality, the more you expose yourself to merchandise the more inclined you are to buy. I never shop for deals. I only shop when i need something. I don't go from store to store to store looking for the best deal because that will simply expose me to more merchandise and stuff i don't need to buy. I buy what i need whether it is on sale or not. When i need it, i buy it. As for bulk shopping, i also think creates more problems. Buy what you need and no more. I don't believe i save anything by buying in bulk, but in fact just buy more than i will use and money wasted.
And, i would tell young people, stop upsizing your expectations. Turn off HGTVand other shows that make you constantly dissatisfied. I look at some of the stupid money i wasted and just shake my head. Did i really need corian countertops? Why do i need something as hard as granite for a kitchen counter for a family of 5 to make peanut butter sandwiches and hold up my toaster? it really is absurd when you sit and think about it.

[maat55]

How else can we explain the reason for houses, garages and storage building filled with junk.