Dealing with a Shopaholic

Read More

Are you a Shopaholic?

Severe overspending is a problem for around 10% of the population. Like any other addiction, it is usually triggered by an emotional or behavioural issue and followed by feelings of remorse and guilt. The overspender may then make promises and attempts to change but after that the cycle starts all over again. Often the biggest hurdle to changing this behaviour is for the overspender to acknowledge they have a problem. Denial is an easy way to avoid having to confront the issue. The signs of chronic overspending are:

  • Spending over your budget even when you are already in debt or unable to pay your bills
  • Overspending on a regular basis (every week, not just a couple of times a year)
  • Compulsive spending; that is, buying things you don’t really need
  • Spending to make yourself feel better when you are under stress or feeling low
  • Hiding purchases out of shame or to avoid an argument with a family member
  • Physical or emotional reactions to spending such as an increased heart rate, sweating and headaches from anxiety; emotional effects such as elation, followed by guilt or depression
  • Frequent arguments with family members and friends about your spending

 Dealing with an overspender by arguing, criticizing, shaming or blaming will usually just make these people feel worse and spend more. The remedy starts with the overspender acknowledging the problem they have and being willing to change. Usually some form of counselling is needed to deal with the underlying causes of the overspending. Lack of self esteem, depression, stress and jealousy of the life styles of others are often root causes. Chronic overspending can affect men as well as women and affects people at all levels of income. Rather than criticism, overspenders need ongoing support and encouragement to change.

Related Articles

Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.