Most common questions used to investigate
Have you ever looked at the emotional and psychological triggers of spending?
Do you make a note of your spending patterns?
Do you shop because of peer pressure?
Do you use credit cards?
Have you set up short-term goals?
Do you budget money?
Common conclusions
Many times, we spend not because we want something, but rather because it is the outcome of some emotional and psychological stress, and more importantly, the gratification that comes from it. In other words, you spend on something as an outlet for your stress. When you understand what is triggering you to spend, you'll be able to better handle those emotions and stress and channel it in a better way.
Make a note of your spending habits and this includes not just how much you spend or what you buy, but also other surrounding factors such as the time of the day, your emotional state (anger, stress, guilt, etc), spending pattern, and other pertinent factors. When you look through this information, you'll be able to discern a pattern, and based on it, you can understand why you spend. For example, some people tend to spend more money later in the evening as a way to counter their work stress while others can spend when they fight with their partner, and so on. Identifying these patterns will go a long way in curbing them.
Your friend's beautiful dress or the vacation pictures of your cousin on social media can make you want them. While it is not bad to spend money on yourself for your enjoyment, you get into dangerous territory when you spend money to compete with that friend or cousin and to prove that you're better. This is a fine line and you must know to handle it well. Before spending, think for a moment if you really need it, and 90% of the time, your answer will be a no. Never get into a competition with others or fall into the pit of peer pressure because it is bottomless!
Throw them away until you have complete control over your spending habits. When you use credit cards, you have little control over spending because it feels like you have money to spend. On the other hand, when you start using cash or debit cards, you spend only what you have and once you run out of it, there's no more spending. The added advantage is you'll never get into a debt trap.
Set short-term financial goals and work towards them. It can be anything like buying a dress for Christmas or going to your favorite place for a vacation or just about anything else. Make sure you have financial goals and save towards it as this will help to control your spending behavior.
Create a budget every month and make sure you don't overspend each time. This should give you a better handle over how your money is spent.
Make sure you stick to your budget.
References
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