How to Change Your Spending Habits
We’ve talked before about new home syndrome: the spending spiral that starts when you feel that your new home needs a new bathroom … and floor treatments … and furniture … and artwork. Before you know it, you’ve added thousands of dollars to your purchase price.
How to Combat Temptation: “When we make a big purchase—like a new home—it can throw off our sense of scale on smaller purchases,” Galef explains. “This is one reason why hotels can charge $5 for a little bag of chips—because that seems like basically nothing compared to the price of a hotel room. To keep yourself from overspending on furniture after a move, choose different benchmarks than the price of the new house.”
Instead, she suggests, weigh each cost against the other things you could buy for the same price. “For example, would you rather have a $5,000 sofa, or a $2,000 sofa and a $3,000 vacation?” Galef asks. You’ll be surprised how much more expensive your purchases seem when you aren’t comparing them to the price of a three-bedroom apartment.
-Written by Allison Kade
Related links from LearnVest:
- 7 Steps to Help You Have More Money this Year
- 10 Helpful Money Habits to Adopt Today
- Sign Up for LearnVest’s Debt-Diminishing Financial Bootcamp