Money excuses you need to stop making

Most of us justify our expenses to make sense of our decisions. Daniel Crosby, Behavioural finance expert calls this “junk food of personal decision-making—easy in a pinch, but bad for long-term health.” He says we justify our actions because we want to explain why we purchase something that does not fit in with how we see ourselves, like for example sensible or frugal.

He says that “Humans are meaning-seeking creatures,…There’s nothing wrong with that. It only becomes counter-productive when we search for reasons that are inconsistent with our broader goals,” such as purchasing a sweater that detracts from your savings goals, he says. “You need to define what is important to you in your financial life and evaluate how decisions conform with your stated values. Otherwise, you’re moving the target to fit an arrow you’ve already shot.” Here are the most common justifications.

I work hard and therefore deserve it – Think of rewarding yourself with experiences and spending time with loved ones. Saving now will give you the flexibility to do just that.

For a Good cause – Make sure your financial priorities are covered before you give money away.

I owe him/her – If someone has spent on you, and you feel obliged to return the gift/favour look at other ways to repay them like helping them with a project, giving them a lift to the airport etc.

I had a good or bad day – look at other ways to gratify yourself, for example have a list of TV shows or movies you can binge watch, take time off for a long run or a workout class, or just stay in and read.