Why People Become Spendthrift?

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Spendthrift refers to a person who is careless with his money. Generally, there are different kinds of spendthrifts – ranging from an impulsive shopper to an extravagant who cannot control his spending at all. In major cases, spendthrifts spend money carelessly to get instant gratification and are not worried of how their bills or debt will be paid in the future. But do you know why people become spendthrifts? What makes them or drives them to spend more or make more expenses?

There are some reasons which make people to spend frivolously without considering their financial stability. This uncontrolled spending behavior has an underlying psychological or emotional motivation. If they don’t overcome these emotions, they would forever stay away from being financially secure. Below are some reasons which make a person spendthrift.

Living lavishly and spending more than their means
Today, majority of people do not have a proper financial plan or financial goals set for their future. They simply spend their hard earned money lavishly without saving even a penny. They throw away money on expensive purchases, trips, meals and vacations rather than focusing on long-term needs. They save nothing, which leads to financial burden in the long-run. This type of compulsive spending causes people to get into debt-trap. So, one should understand his/her responsibilities and be sensible and relaxed in spending.

Dominating emotions
Some people feel that their social status is represented by their financial possessions. Out of this attitude, people willingly purchase high priced status-symbol items. This kind of mindset only drains their money unnecessarily. Beyond a short-term satisfaction, it does no good to you than accumulating credit card debt, mortgage payments, and non-investment for retirement.

Feeling of insecurity
Feeling of insecurity makes people think that they will not be liked or accepted by others, if they don’t spend. And, hence they are compelled to spend money. These people often spend money to impress others or show-off their self-esteem among others. Their goal is to be desperately accepted by people. But, this kind of attitude towards spending in order to feel secure is not the right solution, as the feeling of insecurity is within you (and your personal mental make-up has to be changed). However, if you spend beyond your capabilities, you now have another problem of getting yourself in to debt.

Ignorance about financial intelligence
Many people are not taught about money. They are actually not told about saving and spending. Everything in our lives is linked to money in one or the other way. Money either enhances or suppresses what we can do and what we can have. It is important to understand that one must be competent and responsible with money. Don’t waste your hard earned money on impulsive expenses. They remain as unused stuff in your house.

The above mentioned mistakes make people to become spendthrifts. A spendthrift is a burden for his family and is often responsible for conflicts regarding money. He doesn’t feel responsible for his dependents and go on spending on things for his personal satisfaction. Sometimes such kind of behavior towards spending can be detrimental to one’s finances, personality and relationships.