There is much whispering that a recession is imminent, but one thing seems to be certain. We all have to adapt to these uncertain times. However, when you can’t see the future, you can’t help but feel anxious.
When the new coronavirus infection began to spread, many people tried to spend as little money as possible to manage their anxiety.
However, as time passed, from the reaction of such self-restraint,“Revenge Consumption”I started running to
Since the lockdown was lifted, as if to compensate for the suppressed consumption desire,I end up wasting. For those people, here’s how to get your money back on the right track.
What is “revenge consumption”?
Revenge consumption, as the name suggests, is consumption to “revenge”. It refers to the act of spending money like water after being forced to endure financially, such as being fired from a job or having a pandemic.
New York Times articleThis consumption behavior is seen as a reaction to scarcity, according to the report. You suddenly start spending more and more money trying to make up for the time you’ve endured and lost. It doesn’t seem like a rational move.
In fact, it is not rational behavior. It’s like a vicious cycle of extreme behavior while repeatedly eating and restricting meals.
To stop revenge consumption
Whether you spend it or save it, when you’re in trouble with money, it’s essential to make a budget. To get started, I recommend working on something like the 50/15/5 rule, where 50% of your take home income is for necessary expenses, 15% is set aside, and 5% is for anticipated travel expenses.
Of course, it’s easy to say, but difficult to put into practice. If there is a psychological problem hidden in the root of the consumption behavior, it will not go well.
Here are some tips for setting a budget and sticking to it.
manage cash in envelopes
We’ve talked about it before on LH, and you’ve probably noticed it in your daily life, but it actually hurts when you let go of your cash.
So, if you need to make sure you stick to your budget, it’s better to look at your empty envelope than to check your bank balance online.
That’s where it helpsHousekeeping techniques to manage cash in envelopesis. Get an envelope, write your expenses on the chart, and put your cash in it. Put in each envelope the amount you have allocated for expenses for the month (or until the next payday).
The important thing is that the cash you put in each envelope can only be used for the spending purposes listed on the chart. When the envelope is empty, there is no more money left for that purpose in the month.
The reason why the method of managing cash in envelopes is effective is becauseBecause you have to be more organized with your money(Because you have to decide in advance how much money to put in each envelope).
Plus, it’s easy to use (even if the envelope is empty, you can’t add money).
Shop according to the “buy list”
If you have clear spending goals,Make a real list of what you want to buy before you shopis one way. Create a shopping list using your credit card or bank statement as a reference.
By looking at what’s inside, you’ll be able to make a more thoughtful decision about what you really “need”.
Reward yourself sometimes
The root cause of revenge consumption is too much self-control. don’t forget that. If you want to have a healthy relationship with money, treat yourself “thoughtfully”.
Ask yourself this question.
“How do you think buying this will make you feel?” “How do you want this to make you feel?” “What emotions are you trying to avoid by buying this?”
Only you can decide what is truly worth your life. Grab an occasional latte at your local coffee shop or save up for your annual luxury trip.
Sometimes we dare to do what we enjoy. If pampering yourself improves your overall relationship with money, all the better.
For more information on how to curb unconscious spending, visitherePlease verify.
“Four measures” to be taken now in preparation for the recession | Lifehacker Japan
Source: The New York Times