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The psychology of overspending and how to overcome it

What is causing the majority of people to live beyond their means? US News said it's not just a person’s budgeting skills.

CHARLOTTE, N.C. — Black Friday and Cyber Monday are just days away, but as we’ve shown you, companies have been rolling out deals for weeks, which can make it easy to overspend.

What is causing the majority of people to live beyond their means? US News said it's not just a person’s budgeting skills. Here are some common reasons experts say Americans are overspending:

WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.

  1. Social pressure: The desire to "Keep Up With the Jones" can lead people to spend beyond their means
  2. Lifestyle creep: This happens when your expenses unintentionally creep up as your income increases. To prevent this, make sure you have a financial plan in place and revisit it whenever your income increases.
  3. Emotional impulse spending: Many joke about retail therapy, but it’s a real thing! Experts say if you can understand your emotional triggers that prompt overspending, you can develop healthier coping mechanisms.
  4. People are not counting for inflation: If you don’t adjust your budget to account for price increases you’ll likely find yourself overspending each month.

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So how do you curb these overspending habits? Experts say beyond creating a budgeting strategy, people should also seek professional advice, not just from financial advisors but also mental health professionals.

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WCNC Charlotte's Where's The Money series is all about leveling the playing in the Carolinas by helping others and breaking down barriers. WCNC Charlotte doesn't want our viewers to be taken advantage of, so we’re here to help. Watch previous stories where we ask the question “Where’s the Money” in the YouTube playlist below and subscribe to get updated when new videos are uploaded. 

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