What Do You Splurge on in Mississauga?
Sometimes, you can't control your wallet. Your wallet controls you.
Fancy restaurants, clubs, shopping and beyond - everyone has something they splurge on, and whatever your guilty pleasure is, you're not alone. According to a study on financial guilty pleasures by Capital One Canada and Credit Canada, people in Mississauga and beyond admit that their regular indulgences can often get out of hand.
"Canadians are finding that their regular indulgences can quickly add up - and wreak havoc on essential household expenses when not managed properly," said Capital One in a statement.So, what are Canadians spending on the most?Restaurant food!According to the study, a massive amount of Canadians say that they indulge the most in dining out or buying takeout, with 72 per cent dining out and 71 per cent ordering takeout "more than a few times in a typical month."That's not all - on average, Canadians spend over $199 on outside food every month."It's easier than ever to order in, hail a ride and shop online without ever opening your wallet, but you can lose sight of where your money is going if you're not careful," says Brent Reynolds, chief customer experience officer, Capital One Canada.Reynolds also has some advice: "To keep track, regularly review your credit card account statements or mobile app against your monthly budget. Ask yourself honestly if your guilty pleasure is getting out of hand, and if you need to re-evaluate how often you indulge to find a balance that works with your finances."Treating yourself is definitely a factor in indulgent spending. Survey says that after restaurants and takeout, Canadians most frequently treat themselves to daily coffee purchases (50 per cent), online shopping (44 per cent), clothes shopping (33 per cent) and beauty services (23 per cent).
It may come as a surprise that your age group plays a role in whether or not you can afford your guilty pleasures.
And when it comes to who's more willing to make sacrifices, millennials take the cake.
In fact, millennials are more willing than those over the age of 55 to hunt for coupons (38 per cent vs. 20 per cent), sell possessions (23 per cent vs. five per cent), cancel subscriptions (20 per cent vs. seven per cent) or get a second job (19 per cent vs. four per cent) according to Capital One.
"While one person's guilty pleasure may seem like a waste of money to another, financial responsibility comes down to managing essential and non-essential spending against income and saving for the future," said Capital One.
"The occasional indulgence may seem harmless, but they can quickly add up and actually stand between you and your financial goals, like home ownership or retirement," says Laurie Campbell, CEO of Credit Canada. "According to the study, people heading into retirement are the most likely to not save. If indulging means sacrificing savings, or adding to your overall debt level, you need to take a step back and consider the impact on your financial standing over time."
To put this in perspective, 25 per cent of consumers as a whole attribute their lack of financial goals to their spending habits (perhaps your shoe obsession is getting out of hand!).
And, 27 per cent of millennials hide their spending from others. When there's something to hide, there might also be something to fix.
According to Capital One Canada and Credit Canada, there are ways to combat your bad spending habits:
You can create a realistic budget based on your income - that includes transportation, rent, savings, and discretionary spending. You can find ways to cut down and achieve a bigger financial goal, like saving for a car.
You'll have to track your spending within your budget, too, and evaluate if you're doing okay. How often do you indulge? Is there a cheaper alternative (Timmies vs. Starbucks, anyone)?
You might also need to review your budget if your credit card always has a balance at the end of every month - and remember, your credit score is important!
Perhaps, with a little TLC, you can keep your pumpkin spice latte habit in check and focus on a grander goal. Like a vacation in the Dominican.
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