All Socioeconomic Classes Have One Thing In Common

All socioeconomic classes have one thing in common, bad spending habits. Even the wealthy waste money on impulse buys, subscriptions, and monthly membership fees that they don’t need or use. Most of us rush to buy the latest and greatest digital device even though we purchased the latest and greatest the year before. So, what are the reasons behind the bad spending habits that connect us all? Most people are wasteful out of convenience and desire.  

It’s time consuming to track expenses and create and adhere to a spending plan. Dining out is easier than planning a meal, preparing, and serving a meal. It’s quicker to select brand products at the grocery store instead of reading labels to find a similar product for less. Being frugal takes some thought and most of us don’t want to make the effort. Not to mention, it’s satisfying to buy something we want whether we need it or not.

People who love to shop may joke about going out for some much-needed “retail therapy”, but studies show that shopping can offer excitement and elevate the mood. And it’s a common misconception that poorer people spend more money on things they don’t need more often than the wealthy. Lower income individuals are simply judged more harshly when they do something we all do like treat their family to a meal out or purchase a new TV. There’s a great blog on the topic online written by Paul Taylor that is worth a read. No matter where we come from or how much money we earn we all want to enjoy life, and we would all be much better off if we thought twice before reaching for our credit cards.