Things To Learn from BBC Spendaholics Programme
There is a fascinating programme on BBC called Spendaholics. Basically, it looks at people who are seriously in debt and examines why and how it can be resolved. Although it is easy to feel smug that we are not spending £10,000 a year on shoes or mobile phones (like some of the participants), it still highlights issues relevant for many people.
We Underestimate How much We Spend on Inessentials.
A powerful technique the programme used is to work out how much the person was spending on shoes, coffee, or mobile phones in a year. They would then present the evidence. For example, somebody would see 212 pairs of shoes, 450 takeaway Sarbucks, 300 mobile phones all stacked up. Without exception, people were shocked to see how much they had spent on these seemingly small things. Quite a few had spent over £3,000 a year on say just takeaway breakfast. When faced with the evidence of how much they had spent, many just couldn’t believe it.
- It is easy to forget how much we spend on certain items. When we realise how much we spend, that in itself makes us want to change our spending habits. Many of us live in denial about how much we fritter away.
There is often Psychological reasons for overspending.
Many people over spend because it fills some deeper feeling of loss or inadequacy. But, however much people spend on buying things like clothes and ‘comfort shopping’, it doesn’t solve the underlying problems - it merely masks it.
- Often the key to overcoming compulsive spending habits is to work through difficult relationships or at least realise that spending is not going to solve our problems.
People were surprised at How much fun it was to live on £40 a week.
For many living on £40 cash a week, was a real shock; it was completely divorced form past spending habits. For many it was difficult to adjust; but, after a few weeks, many realised life quality had not been reduced. It really is possible to enjoy things for free.
- To work out what we really need try living on a set amount of cash; it helps change past spending habits and save money.
Outside Perspective
We get into habits of spending and attitudes to money. If we are in debt and don’t know how to resolve the problem, it is worth seeking external advice. Sometimes we can’t see the wood from the trees. There should be no shame in accepting third party advice.
- It is we who have to make the changes, but, a different perspective can definetly help. It is also helpful to speak to an independent expert, rather than a very close friend / family member. - There is less emotional attachment and it is easier to be frank.