We all live in a world where we cannot avoid ‘unnecessary’ expenses. I have come to terms with this hard reality and have realized the best thing to do is to manage your expenses rather than trying to control something seemingly difficult.
Let me start off by giving an example. I enter a super market to buy basic household groceries and am immediately greeted by friendly looking sales executive giving free Credit Card for lifetime and also throwing in attractive cash backs that’s impossible to resist. THAT’S THE FIRST TRAP. They want you to buy something you never want and at times could not afford as well.
Enter the super market and I see mega display of best items in Market at the cheapest prices only in this store (and no where else). Once again I remind myself that this is not why I am here. I am here to buy my daily milk and breads. However at times my mind does get distracted and I occasionally end up buying something from the lot. (Remember the CASH BACK I just got so I can at least afford to spend that much amount). Imagine nearly 30-40% of people falling for this trick and its easy business.
It’s a well known fact that most super markets will place the things of basic necessities in one extreme corner. So when I make my way to find things I want, I pick up stuffs on the way just because they are available at a discount (creating a artificial demand in my mind). And if you are entering the shopping scene with your wife and kids and the list keeps on increasing. What if the discount is not available tomorrow? What if the item is out of stock? Why not buy now and we can use it later?
So with a stacked up basket I finally reach the place where I find my milk and breads only to realize there is not enough space in my basket. So now I need to cut down on my daily necessities only to visit the store again before time!!!
The story does not end here..
If you think the story ends here then you are wrong. When you queue up for paying bills you will usually see very small value items (but big on profit margins) along the way. It’s very easy to grab these items, as they don’t pinch your pocket by too much.
The final killer comes from my wallet i.e. The Mighty Credit Card; getting a sense of satisfaction that I have bought so many things and don’t need to immediately pay for it. And because my card payment is auto debited from savings account I don’t even realize how much I ultimately end up paying for my milks and breads.
And yes, one more thing: Because I was successfully able to complete my mission (of buying things I didn’t want) I decided to reward myself by visiting to a restaurant and treating my self with a hearty meal.
So what’s the way out?
These situations are so common in today’s world. Whether you are buying small things like TV set or bigger things like a car or planning a holiday. Just think of last time when you entered shopping mall and things you could have avoided spending on? It is understandably easy for us to fall for these traps unknowingly. Being aware of the larger risks of overspending is the wiser choice in the long run. Finally it’s your own hard earned money.