Home » Financial Literacy Month » Financial Literacy Month 2015: Confessions Of A Shopaholic

Financial Literacy Month 2015: Confessions Of A Shopaholic

Enter your email address to follow Know Your Money and receive notifications of new posts by email.

Join 416 other followers

Categories

RSS Know Your Money

  • Listen To Certified Financial Planner Tonight, On Donell Edwards: VIEWPOINTS
    Understanding how to avoid making costly mistakes in managing personal finances, and achieve and maintain control of personal finances. Continue reading →
  • A New Day
    I apologize for my absence, but I embarked on a new venture that took much more time than I imagined, but it was well worth it.  In March of last year I started my own talk radio show.... Continue reading →
  • The Conversation Everyone Avoids, That Almost Everyone Should Have
    38% of American households carry month-to-month credit card debt...."Households with the lowest net worth (zero or negative) hold an average of $10,308 in credit card debt."...69% of Americans have less than $1,000 in savings, while 34% say they have no savings at all. Continue reading →
  • Important Announcement
    So, having money problems is not always the result of a lack of knowledge but can involve a person's judgment, circumstances, and sometimes... Continue reading →
  • Her Story
    Recently, a story came to light in my hometown about a 27 year old woman who was cited for a misdemeanor sex charge. She was caught by an undercover detective in a sting operation targeting escort services. It was her first night on the job. How did she get there? She said.... Continue reading →
  • Know Thyself
    She told Oprah that losing her money was the result of, “being a millionaire with a ghetto mentality.” ... The only relationship she had with money was spending it. Continue reading →
  • Saving Is Not Optional!
    There are many attitudes and philosophies about saving, but there is one factor that cannot be ignored in achieving financial security, and that factor is.... Continue reading →
Advertisements

Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.  

 

To book Mr. Edwards to speak at your next event, contact: 

Donell Edwards Enterprises
13111 W. Markham St.
Suite 116
Little Rock, AR 72211
DLEdwards@DonellEdwardsEnterprises.com

 

 

We’re Celebrating Financial Literacy Month

Know Your Money
Tuesday – April 14, 2015

Financial Literacy Month 2015
Confessions Of A Shopaholic
By Donell Edwards

Today’s post is an update of an article that I wrote March 14, 2014 about my experience as a shopaholic.  The purpose of this article is to share with readers how I became a shopaholic in hopes that my confession may help others to successfully overcome this problem, and to encourage others to share their own experiences as shopaholics, how it affected them, and how they deal with this problem or how they overcame it.

The MacMillan Dictionary defines spendaholic as “Somebody who is addicted to spending money.”  Although I came from very humble beginnings and my family did not have much, my maternal grandparents with whom I lived and my mother always tried to make sure that I had everything I needed and most of the things that I wanted.  I became accustomed to getting what I wanted.

Like most parents, my parents wanted me to have a better life than they did.  Even though I lacked for nothing that was essential, as a child, I compared what my family had with others who had more and I felt inferior.  I never discussed these feelings with anyone, and this thinking affected many of the decisions that I made in my life when I reached adulthood.

As a child I watched my mother, my grandfather, and my grandmother and how hard they worked, and how little they earned for their hard work.  I promised myself that I would do better.  I would have a better car, a nice home, I would be a property owner, and I would have everything else that I considered essential to being successful.  I based those desires on others that I observed in my community whom I envied, who unlike my family owned their homes and had all of the things that I felt were missing from my life.  I failed to appreciate all that my family had given me, how much they had sacrificed  so that I could have the opportunity to do better in life.  They sheltered me from the harshness of life in the rural South in the 60s and provided me with outstanding examples of character, honesty, and a strong work ethic.  I only learned to appreciate their struggle and sacrifice when I became an adult and learned how challenging this world can be.

So, as soon as I got my first real job while in high school, I developed bad spending habits.  Although my stepfather tried to teach me to budget my money and to save, I would not listen; I only wanted to spend.  As soon as I could get  credit at retail stores I did, in fact I got several.  To me, being able to buy things and having lots of credit accounts were symbols of success.  So many times I purchased things I really didn’t need and could not afford.  Most of the time I managed to make the required payments, but eventually things spiraled out of control because of my bad spending practices, and before I was 20 I had ruined my credit.

While spending freely, I never considered the damage that was being done to my credit, and the resulting affect not having good credit had on employment opportunities, qualifying for a home loan or auto loan, and many other important aspects of life.

I was an angry young man because I believed I was a victim of systemic racial discrimination that limited my employment opportunities and my income and my ability to enjoy the kind of lifestyle that I deserved.  Although this may have been true, I allowed my rage to influence my decisions instead of using my the knowledge that I possessed to make better decisions.   I had developed a sense that I was entitled to more, that I deserved the things I wanted, and that when I got married and had a family that we deserved more.  

 

Will Smith on Spending

 

 

In my early 20s I had to work for years to rebuild my credit.  Eventually my employment improved and so did my income, but I still viewed myself as underemployed and underpaid.  In time, my credit also improved enough for me to get credit cards.  Although I was more cautious now, I still had not learned from my prior experience with credit and spending.  I used credit cards to substitute for what I felt was a limit in my income due to underemployment, and used them to get what I wanted and reasoned that I would find a way to pay the credit card bills somehow.  It was never my intention not to pay my bills, I was just reacting to my circumstances, which I felt were unfair, but it was the wrong reaction.  

I had become a spendaholic, because I was addicted to spending moneyin my case, I was addicted to using credit cards; I knowingly spent money that I did not have by using credit cards excessively.  It wasn’t that I didn’t have a budget or that I did not understand how to budget, however, at that time my budget was based on hope rather than on reality.  Hope that I would get a better job, hope that I would be able to make more money, hope that I would be successful in business ventures that I started, and everything would be alright.  At the same time I was mad because I was in this situation and I felt life was unfair and I was reacting to my circumstances.  Whatever my reasons, they were wrong.

As I embarked down this path to financial self-destruction I was in denial and rejected the good advice I received from family and friends who tried to help me.  I would tell them, “You just don’t understand.”  Eventually I lost everything and had to work to reestablish my credit and rebuild my life.  All because of being a spendaholic.

Those experience in life taught me valuable lessons that I will never forget, and that I hope will allow me to help others by sharing the knowledge that I gained from having those experiences.  I know that spending can be addictive, but anyone who really wants to can overcome the addiction.  Just don’t let it destroy you before you take action.

Brave Souls Wanted:
If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to info@knowyourmoneyglobal.com.

 

 

How to Set Up A Budget

Buying vs Renting A House:  The Advantages of Each

Teaching Kids About Money

 

Here is today’s step to financial wellness from Thirty Steps to Financial Wellness developed by Money Management International:

Step 12 – Set Short-, mid-, and long-term goals

 

EVENTS AND RESOURCE LINKS:

Hosting A Financial Literacy Month Event

2015 National Savings Forum

Financial Literacy Month Articles from Huffington Post 

The FoolProof Foundation

FoolProof Teacher

FoolProof Solo

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

 

Follow us on Twitter for more information about personal money management
https://twitter.com/Kn0wY0urM0ney

 

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

Copyright © 2015 CWR Media – All Rights Reserved

 

Advertisements