Persistent inflation and rising rates in the last year and a half have caused many Spaniards to have difficulty meeting their expenses. The recent European Consumer Payments Report from the credit and collection manager Intrum puts it into perspective: 28% spend more than they earn. "Spain is the second European country where citizens have the most expenses above their income, about 328 euros on average," the study points out. It remains four points above the European average, 24% and with an average excessive spending of 232 euros.
In addition to your wallet, to contain excessive spending you must also pay attention to emotions; the influence of the environment and past experiences can cause an increase in consumption and continue to imbalance the accounts.
Elizabet Wakefield, financial advisor and expert in personal finance and investments, mentions that emotions can lead one to seek immediate gratification through spending.
Envy, sadness, anger... "Emotional purchases are often financed through credit cards or other forms of debt, causing monthly payments to exceed cash receipts. It further increases the financial burden and contributes to the imbalance between income and expenses". Added to this is that the advertising industry, along with social pressure, encourages spending on products or experiences that may be beyond a person's financial means, making it difficult to resist impulse purchases, he explains. the advisor.
In Spain, saving can become an even greater challenge. Vicent Borràs Català, professor of consumer-oriented sociology at the UAB, comments that the country is governed by a spending culture oriented toward immediate enjoyment guided by habits of excessive socializing, where consumption is a tool to achieve social status. Thus, group pressure along with the influence of friends and family are also determining factors when consuming. People may be more inclined to spend impulsively to fit into society, he says.
Taking into account the difficulties that it can cause in your economy, which are not few, there is a way to contain spending intelligently. For Wakefield, the main key to having a healthy economy is having a budget. And not just stay at a general one, but an annual one and another monthly one that reflects income and expenses must be carried out. In this way you will be able to have a clear vision of your finances and you will be able to establish affordable financial goals, that is, "define short, medium and long-term objectives in a precise and concrete way so that we can decide what to invest in."
José Luis Bellosta, managing director of Intrum Spain, states that, in this scenario, it is essential to avoid over-indebtedness and promote good financial education. "When we talk about this matter, we are not referring to investing in the stock market or complex concepts, but rather having adequate economic knowledge that allows one to manage personal finances more efficiently," says Víctor González Quevedo, from the same entity. He also influences the forecasting of expenses and savings. "Trying to dedicate a part to savings, no matter how small, can be key to facing unforeseen events or extraordinary expenses in the future that we have not contemplated, and thus avoiding debt."
In short, the factors that can increase spending are more than what appears at first glance: good emotional management is essential to prevent impulsive purchases. In turn, implementing the habit of budgeting and setting clear savings goals will help combat excessive spending and reach the end of the month with a healthy economy.
