The simplest explanation for overspending is the biochemical reward from our brain whenever we receive something we want. It’s the reason we do most things, really.
Getting stuff feels good. Ever heard the expression, “retail therapy?”
It works, too. Ice-cream, chocolate, toys, cars and jewelry can all produce a profound biochemical reaction. What’s worse, they create a reward-system of behavior. Doing things that feel good is natural, hence, the behavior of overspending, even though we probably should know better.
Fortunately, humans have evolved the pre-frontal cortex specifically to moderate unchecked emotions. The “executive center” of the brain. We can consciously decide what impulses we want to respond to. We call this self-control.
The average human doesn’t reach full developmental maturity until the approximate age of 26. Which is why unscrupulous marketers target younger audiences. But even most adults can be swayed if the prize is shiny enough.
Knowing this about ourselves can help us make better choices in general. Rational decision making is aided by access to unbiased information. The single best tool you can have at your disposal is the financial spreadsheet.
The Cash Dash is the perfect tool for limiting overspending.