It is with great pleasure that I reintroduce Clair Schwan of Frugal Living Freedom.  This is third and final post of a three part guest post from a frequent contributor, Clair Schwan, on spending money.  It is a very timely topic, in that with the holidays, we are all making purchases.  Furthermore, with the economic crunch, we all need to think much harder about our purchases.  Here is the link to Parts I and II, Guest Post: Spending Our Money (Part I)-- Meeting Our Needs and Guest Post: Spending Our Money (Part II)-- Satisfying Our Wants.

Clair has also composed a four part series on this site about saving money on gasoline usage [Here are the links for his previous posts, Guest Post: Ways to Get More MPG (Part I), Guest Post: Ways to Get More MPG (Part II), Guest Post: Ways to Get More MPG (Part III), and Guest Post: Ways to Get More MPG (Part IV)].  Be sure to check out his site, here is my review, Blog Review: Frugal Living Freedom.  --DDFD

Maybe you don't consider yourself a spendthrift.  That's great, but you still need to be aware of how we convince ourselves to spend money in wasteful ways.  We use these excuses even when we think we're making a good purchasing decision, be it something we need or a discretionary item, so a good look at these excuses will be helpful for all of us.

If we start to recognize these "red flags," then we'll need to find a way to put the brakes on fast.  Once you're headed over the financial cliff, it's too late to start thinking about applying the brakes.  We need to be prepared.  Remember, there is no limit to the things we can spend money on, and there seems to be no limit to the excuses we can use to justify wasteful spending.

Let's look at common excuses for wasteful spending.  Here is just a short list.

Now, let's look at some of the real reasons behind our discretionary purchases.  If we're doing self-examination, some of these won't be easy to see.  We won't want to admit they pertain to us, but they do.  Most discretionary things are sold to us based on emotions, so let's look at how we fall prey to this.

The idea that we might be spending our money foolishly is troubling to many people.  Being a wise shopper is only part of a money management program, but it's perhaps the most important part.  If we can't make good spending decisions, then there likely won't be any money left over for investments and savings that help facilitate our future.

If we don't get a grip on unwise spending, it often gets an uncomfortable grip on us, and that's no fun at all.  I've been there, done that, and I'm never doing it again.

If you or someone you know seems to have a money spending problem, you might want to take a look at http://www.frugal-living-freedom.com/compulsive-spending.html to understand more about compulsive spending that ruins lives.

Here's to all my frugal friends out there that are trying their best to be wise spenders,

--Clair Schwan