Everyone has to shop in order to buy necessary items for their home and life, but there is always a temptation for individuals to purchase things that don’t really fit into their financial strategy. This can hurt some Americans’ budgeting and also become a much bigger problem, such as increasing debt.
More than 35 percent of individuals felt some sort of guilt after going on a shopping spree, which could signal they may be buying items to the point of being a shopaholic, according to a report from CreditDonkey.com. Another sign of this is keeping items that were recently purchased out of sight from family members, which occurred with close to 21 percent of people surveyed.
“Since one key indicator of addiction is denial, we didn’t expect many respondents to raise their hands and announce, ‘Yes! I’m a shopaholic!'” said Charles Tran, founder of CreditDonkey.com. “But the survey results reveal a significant percentage of consumers display some, or all, of the warning signs of a shopping addiction.”
Approximately 11 percent of respondents said they go out to the stores and purchase items just to help them feel better emotionally, the report showed. Close to half felt excited once they got to the store to buy things. Money arguments were also an issue for a sizable portion of those surveyed, as nearly one-fifth explained this happened often. Nearly the same level noted they use credit cards just to pay for items they can’t afford.
Retirement savings problematic for some Americans
Overspending can run the risk of making a financial strategy less useful, especially when it comes to saving for the future. The longer an individual neglects saving for later in life, the higher the risk they could have at not being able to retire on time, or having less money than they initially planned.
Less than 20 percent of Americans who are employed increased their retirement contribution in the past year, a report from Bankrate.com noted. Nearly 55 percent are saving the same amount from last year, while 17 percent cut their savings down in the past year.
“This is troubling considering the availability of catch-up contributions for those 50 and up, as well as the higher 2013 contribution limits for all eligible IRA and 401(k) contributors,” said Greg McBride, senior financial analyst for Bankrate.com.