The Rachel Cruze Show - Why Americans Are Spending Money Faster Than Ever Before

Starting point is 00:00:01 Hey you guys. So recent data is finding that fewer people are shopping in store than they were just 20 years ago. But studies are also finding that consumers are spending more money than ever before. So how can both of these things be true? Well, that's what we're going to talk about today. And stay tuned because I'm also sharing five tips to keep you under budget while most of the country is falling for all these consumer traps. And before we get started, make sure to hit that subscribe button on this channel so you don't miss a future episode. New data from the Bureau of Labor Statistics says that stores are seeing significantly less traffic than just a few decades ago. But the price of daily essentials has gone up, and we all know this because we're feeling the pain, right?

Starting point is 00:00:49 Just because we're not in-person shopping, even if we're doing it online, man, things are getting more and more expensive. And the reason that both of these things are true at the same time is because online shopping has just taken over, right? I mean, we don't go into actual stores anymore because it's all at our fingertips. I mean, literally, from Amazon to Instacart to online bills and baking. I mean, we are spending hundreds every single week without even leaving our house. I mean, it is wild how much you can do, how much shopping, how much buying, just your phone.

Starting point is 00:01:24 I'm like, even our pizza place has an app. So it's like you hit the app, you hit the app pay. You pay it with literally two hits of a button. and then it shows up. I mean, it's just, it is wild how easy it is to spend, how convenient it is in one way, but that usually means we are overspending. But again, knowing all of this, just think back, right, to your childhood. I mean, I go back to like sophomore year. You know, it's 2003, you're wearing your knockoff Birkenstocks, your Flair Gackies, your Abercrombie hoodie, you got your BFF, you're going to the mall, you just use your cheese straightener.

Starting point is 00:02:01 You know, you're going to go buy a phone case over your Nokia phone. You got your North Face jacket on that you got for Christmas. I mean, all of it. You got about 15, 20 bucks. You're going to go to Claire's. Call it a day. You'll get an Auntie Ann's pretzel from the kiosk. I'm like, that's what we did.

Starting point is 00:02:19 Like, that was it. Going to Hollister, can't breathe, can't see. But that is where we lived. I mean, it's just, it's it. There wasn't much to it, you know? And you got a little bit of money. You go and spend it. and you leave. But now, man, those days are gone. It kind of makes me sad. It really does.

Starting point is 00:02:37 Going back to those days would make me happy. But again, nowadays, it's not just 15, 20 bucks when you're online. You see it all? It's all right there. Stuff you never would have known existed. But there it is on your phone. And that is why it makes it so easy to overspend is the knowledge of all this set is out there and the convenience of spending so quickly. All right, here are five ways that you can stop yourself from going over budget with the wrong click of your smartphone. And spoiler alerts, number five is the most important. All right, number one is to add to cart and wait. I say this a lot, but I think this is really a great tip because if you're in a shopping mood, like, yeah, be in it. It's fine, right? Like go and enjoy. Click, click, click, click, click. But don't buy.

Starting point is 00:03:27 Let your emotions die down. Go back a day or two later. And usually when you go back and look through the car, you're like, yeah, I really don't need that. Didn't need that. Didn't need that. Didn't need that. It's just amazing.

Starting point is 00:03:36 Letting time between you and the purchase can save you money. Number two, keep an intentional list of all your needs. So think about, like, paper towels. Maybe you have to buy a plane ticket next month because you're going out of town. You know, whatever is happening in your life, just make a list for it. Don't feel like you have to go buy it right that instant. And then let that list guide you. you. So whether it's like once a week, go and check it and be like, okay, what do I really need

Starting point is 00:04:01 right now? And let that be your guide versus this instant idea of like, oh my gosh, I have to buy something and buy it right now. The third is to make sure that you have money set aside in the budget. So always be using cash. If you are not budgeting, you guys, you have to do this, because this is giving you the guardrails and really the boundaries around spending your money. And it helps you spend in peace. So you can actually create a budget for free with every dollar. So I will leave the link in the description. So make sure to check that out. All right, number four is to check your motivation.

Starting point is 00:04:33 When you're buying stuff, why are you buying it? Are you doing it because you're bored? Maybe because you're sad. Maybe because you think like, okay, this will fulfill me. This will bring me happiness or joy. Like when you know your motivation behind something, it can make you second question, you know, second guess your purchase. And I think it's really healthy to do is to stop and ask why.

Starting point is 00:04:53 One question I always ask is if nobody sees this purchase, do I still want it? So again, it's getting your motivation in the right spot. Number five is to create friction. So those other four items on the list should accomplish this. But again, adding time, adding different steps to slow down the process is going to help you. So I really resist creating online accounts on stores that I love because if so, you can just log in and everything is built in. You know, they know what you like. All your info and your address and all of it is there.

Starting point is 00:05:24 So like you can buy so much faster. where instead maybe you go on a website, shop, wait a little bit, see if you really want it, a day later. And if you do still go through the actual buying process of like entering your address or entering in your debit card information. So again, putting some time and friction in place is really, really key. So when it comes to spending money, the landscape will always be changing. And your job is to adapt and to keep your habits in check no matter what technology or what trends are out there. So if you have fallen behind a little bit in this area, don't worry, you're not alone, but get back on track and check out my 24-hour money finder. I'm so excited about this because this is going to help you find some money in 24 hours. This has been really successful for people because it's making you kind of think outside the box, check a couple of things, and again, hopefully find some great margin. Now, overspending and all of us, it's really sneaky. So make sure that you're not falling for any of these subtle scams. or these ways that really, you know, marketing tactics that make you want to buy and shop for more.

Starting point is 00:06:29 So if that might be you, make sure check out my episode on signs that you're addicted to shopping with Dr. John Deloney. That's next. Or if you're listening on podcasts, click the link below. All right, you guys, make sure to share this episode with a friend who made love to shop. Because listen, we love a good shopping buddy. And remember to take control of your money and create a life you love.

The Rachel Cruze Show - Why Americans Are Spending Money Faster Than Ever Before

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.