I think there are a lot of ways to answer this question and each person would really need to look at their own spending and try to figure out what they are getting from the spending. Is it a feeling of security from having so much stuff? A feeling of entitlement, that you deserve these things? A feeling of superiority over the clerks or other shoppers? An unrealistic view of their real income? A denial of their debt or expenses? Maybe it's a throwback to living in poverty as a child, or a rebellious way of getting back at a controlling parent or spouse? I think whatever the real, underlying cause is, there is also a huge push in our society that STUFF=GOOD, that money can buy happiness, and that urges all of us to buy that next best thing when we probably don't really need it. Commercials and TV make us forget that we need to think long term, about retirement and college and weddings! You can always make up that $50 in your IRA later, but those shoes would look so good on you right now!! Often, sitting down and writing our what your long-term goals really are, and planning what that might cost can help curb spending in the short term. If you really want a weeklong Hawaiian vacation on your 50th birthday, or to retire when your 55, you might pass up the shoes today in exchange for knowing you are saving toward those long-term goals. If you're having trouble with a realistic budget and with spending or saving, check out The Motley Fool. The website itself is about investing but they have message boards that deal with everything from getting out of debt and living bellow your means, to parenting in a financially responsible way, including teaching kids the value of money!