Friday, April 19, 2019

Case study: personal finance bad habit associates with impulsive shopping

April 19, 2019

Introduction


It is my personal finance research. I found out that I did not spend time on my par tech 401 K from 2007 to 2019, I do not do monthly or quarterly or annual rebalance, I do not do the fund analysis or basic follow-up. I do not spend time to look into research about investor psychology. There are so many issues in the management of the account. This is all related how to value the time, value the community, value the money, value the research, value to reinvent myself. I believe that this is associated with my impulsive shopping problem and emotional problems, my decision making process.

Case study


I think that frugality study helps me to learn to separate wants from needs. 24 hours or 72 hours rule helps me to learn how to delay gratification. I also learn how to identify the short enjoyment of holding those clothes or items and short time period sense of ownership. I do not bother use them after the purchase.

I also learn from minimalism life style. When I did shopping coats, one time I drove my SUV and cross border to Bellingham, I bought six coats on sales.

I have to find ways to release my stress, or my social needs. Those emotions went to enjoyment of shopping from 2010 to 2017.

I also heavily shopped when I took vacation in China. My siblings were also very cooperative to allow me do this gifts shopping costing thousand Canada dollars in 2012, 2014.

I think that the way I understand what money is used for is so shallow. I allow myself to spend unnecessary extra coats, jeans, handbags, sneakers. I only wear off one pair of tennis shoes, I cannot wear any off another five pairs of tennis shoes. I do not know that I can just play tennis using my normal sports shoes.

I wrote the wechat post to reflect on the mistakes I made to treat my par tech 401K account.



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