Clicky
  • home Home
  • keyboard_arrow_right Kaya Biz
  • keyboard_arrow_right Posts
  • keyboard_arrow_rightThe psychology of overspending and practical steps you can use to stop

The psychology of overspending and practical steps you can use to stop

By: Natasha Archary

overspending
Image: Ivan Samkov Pexels

Financial journalist and author at Maya on Money, Maya Fisher-French joins Gugulethu Mfuphi on Kaya Biz to share insight on the psychology of overspending, and share some practical steps that can help to curb going over your monthly budget.

The impulse to spend money even if you didn’t plan to can be difficult to resist and boils down to financial discipline.

“It is also about what you’re trying to achieve, and whether your impulsive spending habits is sabotaging that goal, more than conditioning yourself into the mindset that you simply cannot have it.

South Africa is not particularly a nation of savers, and this has I think, a lot to do with credit extension.

For a country of our development, we have a lot of easily accessible credit available, compared to countries in the same developmental category as us, such as Brazil, China and India.

These two countries have a substantially better savings rate than South Africa, and they have less access to credit.”

Maya Fisher-French on the psychology of overspending

Maya says South Africans are spoilt for choice when it comes to purchasing on credit, with loans from banks, or store cards for groceries, clothing, and other essentials, making it easier for us to buy things on credit and worry about paying it back later.

The same money that South Africans use to pay off short-term debt is where all our potential savings and wealth creation lies.

Touching on emotional spending, Maya tells Gugulethu that as humans we either eat for reward or spend for reward, but need to be mindful that in the moment you feel better about what you’ve purchased, but then you feel terrible stressing about how you’re not going to pay off that debt.

“Scientists have actually studied this phenomenon and found that when we’re impulse buying, your brain releases dopamine, which is the same chemical that is released when someone takes cocaine.

Which gives one a type of ‘high’, but what is important to note is that when we shop, it’s the anticipation of owning the object that gives us that kick.”

Maya says once you own whatever it is you’ve purchased, the dopamine levels drop and people who overspend will then move onto the next thing they need to buy to feel that high again.

Practical steps to stop you from overspending

Leave your credit cards at home when you go out

If you’re overspending, you might want to consider leaving your credit and debit cards at home when you go out. Instead take a small amount of cash with you, which will push you to only make a purchase within that limit.

Ask someone to hide your cards

In the time it takes you to find your hidden cards, you can ask yourself if you really need to make this purchase.

Don’t use your credit cards like a debit card

Using your credit card is basically you making use of money you do not have. Stop using your credit cards to pay for small, everyday purchases such as your morning coffee, lunch or even petrol when filling up.

Create a “needs” vs “wants” list

Ask yourself if you need this or want it. If it’s a necessity, something you cannot do without because of convenience, safety etc. then it’s a priority. But, you have to learn to balance your needs and wants and make sure you’re not placing every purchase under your needs list.

Find other sources of happiness

A new pair of boots is only going to make you happy temporarily, and once the novelty wears off, you’re back to feeling meh. So, find other sources of happiness, whether it’s going to the gym, taking a stroll to watch the sunset, cooking a meal for yourself, reshape your association with material happiness.

Listen to the conversation on Kaya Biz:

Also read: What are things that are a blessing that you continue complain about

Written by: Natasha



UpComing Shows

DownLoad Our Mobile App

Privacy Policy

THIS PRIVACY STATEMENT FORMS PART OF KAYA 959’S TERMS OF USE POLICY. IF YOU DO NOT AGREE WITH ANY TERM OF THIS PRIVACY STATEMENT, YOU MUST CEASE YOUR ACCESS OF THIS WEBSITE IMMEDIATELY. 

POPIA ActTo promote the protection of personal information processed by public and private bodies; to introduce certain conditions so as to establish minimum requirements for the processing of personal information; to provide for the establishment of an Information Regulator to exercise certain powers and to perform certain duties and functions in terms of this Act and the Promotion of Access to Information Act, 2000; to provide for the issuing of codes of conduct; to provide for the rights of persons regarding unsolicited electronic communications and automated decision making; to regulate the flow of personal information across the borders of the Republic; and to provide for matters connected therewith.

RECOGNISING THAT—

  • section 14 of the Constitution of the Republic of South Africa, 1996, provides that everyone has the right to privacy;
  • the right to privacy includes a right to protection against the unlawful collection, retention, dissemination and use of personal information;
  • the State must respect, protect, promote and fulfil the rights in the Bill of Rights;

AND BEARING IN MIND THAT—

  • consonant with the constitutional values of democracy and openness, the need for economic and social progress, within the framework of the information society, requires the removal of unnecessary impediments to the free flow of information, including personal information;

AND IN ORDER TO—

  • regulate, in harmony with international standards, the processing of personal information by public and private bodies in a manner that gives effect to the right to privacy subject to justifiable limitations that are aimed at protecting other rights and important interests,
  1. Definitions and Interpretation

1.1.“Personal Information” means information relating to an identifiable, living, natural person and where it is applicable, identifiable, existing juristic person, including all information as defined in the Protection of Personal Information Act 4 of 2013. 

1.2  Parliament assented to POPIA on 19 November 2013. The commencement date of section 1Part A of Chapter 5section 112 and section 113 was 11 April 2014. The commencement date of the other sections was 1 July 2020 (with the exception of section 110 and 114(4). The President of South Africa has proclaimed the POPI commencement date to be 1 July 2020.

 
1.3. “Processing” means the creation, generation, communication, storage, destruction of personal information as more fully defined in the Protection of Personal Information Act 4 of 2013.  

1.4. “You” or the “user” means any person who accesses and browses this website for any purpose. 

1.4. “Website” means the website of the KAYA 959 at URL www.kaya959.co.za or such other URL as KAYA 959 may choose from time to time.   

  1. Status and Amendments

2.1. KAYA 959 respects your privacy. This privacy policy statement sets out KAYA 959’s information gathering and dissemination practices in respect of the Website. 

2.2. This Privacy Policy governs the processing of personal information provided to KAYA 959 through your use of the Website. 

2.3. Please note that, due to legal and other developments, KAYA 959 may amend these terms and conditions from time to time.  

  1. Processing of Personal Information

3.1. By providing your personal information to KAYA 959 you acknowledge that it has been collected directly from you and consent to its processing by KAYA 959. 

3.2. Where you submit Personal Information (such as name, address, telephone number and email address) via the website (e.g. through completing any online form) the following principles are observed in the processing of that information: 

3.2.1. KAYA 959 will only collect personal information for a purpose consistent with the purpose for which it is required. The specific purpose for which information is 
collected will be apparent from the context in which it is requested. 

3.2.2. KAYA 959 will only process personal information in a manner that is adequate, relevant and not excessive in the context of the purpose for which it is processed. 

3.2.3. Personal information will only be processed for a purpose compatible with that for which it was collected, unless you have agreed to an alternative purpose in writing or KAYA 959 is permitted in terms of national legislation of general application dealing primarily with the protection of personal information. 

3.2.4. KAYA 959 will keep records of all personal Information collected and the specific purpose for which it was collected for a period of 1 (one) year from the date on which it was last used. 

3.2.5. KAYA 959 will not disclose any personal information relating to you to any third party unless your prior written agreement is obtained or KAYA 959 is required to do so by law. 

3.2.6. If personal information is released with your consent KAYA 959 will retain a record of the information released, the third party to which it was released, the reason for the release and the date of release, for a period of 1 (one) year from the date on which it was last used. 

3.2.7. KAYA 959 will destroy or delete any personal information that is no longer needed by KAYA 959 for the purpose it was initially collected, or subsequently processed. 

3.3. Note that, as permitted by the Electronic Communications and Transactions Act 25 of 2002, KAYA 959 may use personal information collected to compile profiles for statistical purposes. No information contained in the profiles or statistics will be able to be linked to any specific user.    

  1. Collection of anonymous data

4.1. KAYA 959 may use standard technology to collect information about the use of this website. This technology is not able to identify individual users but simply allows KAYA 959 to collect statistics. 

4.2. KAYA 959 may utilise temporary or session cookies to keep track of users’ browsing habits. A cookie is a small file that is placed on your hard drive in order to keep a record of your interaction with this website and facilitate user convenience. 

4.2.1. Cookies by themselves will not be used to identify users personally but may be used to compile identified statistics relating to use of services offered or to provide KAYA 959 with feedback on the performance of this website. 

4.2.2. The following classes of information may be collected in respect of users who have enabled cookies: 

4.2.2.1. The browser software used; 

4.2.2.2. IP address; 

4.2.2.3. Date and time of activities while visiting the website; 

4.2.2.4. URLs of internal pages visited; and 

4.2.2.5. referrers. 

4.3. If you do not wish cookies to be employed to customize your interaction with this website it is possible to alter the manner in which your browser handles cookies. Please note that, if this is done, certain services on this website may not be available. 

  1. Security

5.1. KAYA 959 takes reasonable measures to ensure the security and integrity of information submitted to or collected by this website, but cannot under any circumstances be held liable for any loss or other damage sustained by you as a result of unlawful access to or dissemination of any personal information by a third party. 

  1. Links to other websites

6.1. KAYA 959 has no control over and accepts no responsibility for the privacy practices of any third party websites to which hyperlinks may have been provided and KAYA 959 strongly recommends that you review the privacy policy of any website you visit before using it further. 

  1. Queries

7.1. If you have any queries about this privacy policy please contact us by emailing [email protected]