Are you conscious? Make sure you are before you go shopping!!

Have you ever opened your credit card bill and been absolutely shocked at how much it is? Worse still, have you ever been too scared to open it, knowing you were going to be shocked? How about going into your wallet and going “where did that $100/$200/$300 etc go?  We call this being in the “money fog”! Essentially not having any clue how much money we are spending or have spent.

The money fog is almost always worse when we’re using credit cards, because the spending is often unconscious. In other words, you don’t really have to think about it, you just hand over your card without even considering what the balance already is. Provided you’re not at your limit you can easily do a day of retail therapy, or compulsive shopping, without giving the total amount spent another thought! You can just shop until you drop! Whilst you can also be in the money fog when using cash or debit cards, reality is closer at hand! You will either run out of money, need another trip to the money machine, or your debit card or EFT POS card will be rejected. Your spending therefore has to be, if not completely , at least partially, conscious.

Conscious spending is being aware of, not only how much you’re spending, but also being aware of what you’re buying! Do you really need it, or have you just seen it and want it, RIGHT NOW?

I know that when I was at the peak of my overspending, I could have a day out shopping without giving a thought to how much it was costing, or if I really needed what I was buying. As I was a very regular Internet banker ( I had to be, to keep juggling my money!) my shocks at how much I’d spent came pretty early on!  The unneeded purchases were often obvious very early on too! I might have “needed” a painting but did I need ten?

As the reasons you overspend, or shop compulsively, are many and, often, complex there isn’t a quick cure. However, if you only use cash or debit cards, the harm you can do is minimised. The other key is tracking your spending, that is, write every single cent you spend down.

If you are concerned about your spending or any of this, please seek help. The Financial Recovery℠ Institute has a list of counselors http://www.financialrecovery.com/?p=find-by-area. If you cannot find one in your area I, and a lot of my colleagues, offer counseling by phone or via Skype.

Do you have a story of being too scared to open your credit card bill? Please share it with us below in the comments section.