Spending Frenzy

You’re having a bad week and it’s not getting better. It’s almost Friday and work is weighing heavy on your mind. A friend calls you and asks what you are doing this afternoon. No plans. Let’s go to the mall. Get a coffee. Buy something.

The overall mood of the American household is in decline. In contrast, the economy is up. Recent consumer surveys show that concerns about the economy, mainly high gas prices, have led consumers to shop away their worries. It seems conflicting but many Americans get the overwhelming urge to purchase something when they are depressed or anxious.

The car may need new tires and a tune up- we could buy a new one. You’ve needed a new outfit for work and maybe a pair of shoes. It seems like the current mindset of our economy is an indulgent one. A new government report shows U.S. retail sales increasing by 1.4 percent in April. This is a full percent higher than predicted and a large improvement over a 0.4 percent increase in March.

The shoppers aren’t just at the mall either. Measuring sales in clothing stores and department stores to gas stations, car dealerships and home improvement outlets, the average increase was 1.94 percent.

The concern comes with the ability to pay for the indulgences with the economy still lagging. Gas prices have declined 3 cents per gallon but more relief is not expected or being promised anytime in the near future. Meanwhile, little relief may come from the economic splurging. When the credit card bills come in next month, we’ll see how the national spending has fared.

There is nothing wrong with spending frivolously every once in a while. I certainly had a bad budgeting month too. The important thing is to get back on track with a household budget. If you budget accordingly you will have the extra cash to splurge and not feel guilty about it.

Everyone loves to occasionally impulse buy. Just think about it this way, when you get it home and look at it, you probably wouldn’t have bought it in the first place. It could’ve been overpriced or impractical, but it served a purpose for the day.

Here’s a tip: It’s okay to occasionally impulse buy to make a bad day or week better…just try to keep the cost to a minimum. Think about any major purchases (like a car) before you decide. Give it a day or two. You’ll be happier with your decision in the end.