Once upon a time, “keeping up with the Joneses” meant comparing your lifestyle to your neighbors. In today’s digital world, we can compare our wealth with everyone on social media. Financial professional Mindy McIntosh talks with FOX66 Jennifer Profitt about social media pressures to overspend.
It may be tempting to want to buy things you’ve seen on social media – maybe you’ve seen lots of travel pictures. But, spending beyond your means could have long-term effects on your finances. For instance, charging purchases onto a credit card and carrying over balances could get you into financial trouble.
You really should ask yourself before making any purchase, is it a need or a want? If it’s a want, don’t buy it on impulse. Give yourself some time to think it over. There are six things you should never put on a credit card.
We recommend people to start and maintain a budget. Before making any purchase, ask yourself if it fits into your budget. If not, create a plan and begin saving for it. Working hard and saving for that thing you really want can be very gratifying.
There can be several things people can do to help control spending.
- It might be a good idea to track your expenses. That can help you determine where you may be able to cut down spending. In addition, writing a budget down can keep you accountable to a specific spending goal, so you might be less tempted to go on a shopping spree.
- It might also be helpful to create different accounts for savings, checking, and retirement, and funnel money into all of these accounts every paycheck. By separating your accounts, you may be less tempted to dip into money you have stashed away for particular purposes.
Are your friends causing you to go into debt? Click here to read more on Forbes.