The Wall Street Journal published an article with research suggesting we tend to spend too much for less than obvious reasons. I thought it contained some worthwhile insights.
First, the research found that many folks are terrible at estimating future expenses, which leads us to believe we can afford a house or a car that is actually too costly.
Second, the study found folks have a tendency to overspend to reward themselves particularly during periods of stress.
Third, researchers found that unhappy people save less, spend more and tend to have a higher propensity to consume, while happy people exhibit the opposite characteristics. Interestingly, the study recommends that people actually wait until they are in a better mood to make financial decisions.
Finally, the study indicates that as home equity increases, household consumption tends to increase.
If you are struggling to keep your spending under control and recognize that you may have some of these tendencies, there is hope. I suggest that you ask the Lord to help you bring them under His control. As believers, we can get better at avoiding things like stress spending to reward ourselves and the bad decisions we make when we are unhappy. In truth, we have a distinct advantage: the Holy Spirit, who teaches us how to live a self-controlled life. Will you invite Jesus to take control of your finances and help you overcome your bad decisions? It is the greatest financial decision you can ever make.
