Why We Buy Too Much: The Psychology of Overspending

Like all behaviors, your buying habits reflect your background, experiences and psychological makeup. But those things don't have to control your financial future. Here are some emotional states that drive people to make poor purchasing decisions, and some advice on how to keep those emotions from sending you to the poorhouse.
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Retailers are spicing up their brick-and-mortar stores to keep you walking through the door. Their game plan? To design environments that are equal parts high-tech and homespun. But will the changes be enough to keep physical stores from being reduced to showrooms for e-commerce sites?
Mitt Romney paid a lower tax rate on his $21.6 million income in 2010 than the average U.S. family. It's no secret how: He made his money from investments, not wages. But even people who favor low capital gains taxes might not approve if they understood more about a neat little income category he benefited from called "carried interest."
A court ruling Monday stubbed out an FDA attempt to plaster extremely graphic warning labels on cigarette packs. The decision has reignited a debate over which right trumps which: The right of the government to warn Americans about the health risks of smoking, or the First Amendment rights of tobacco companies.
In financial planning, people usually play offense: It's about finding the right strategy to get to the goal. But it's just as crucial to have a good defense. Cal Brown, a financial planner and author of the new book When Life Strikes: Weathering Financial Storms, shares some of his defensive plays with DailyFinance's Laura Rowley.
Santa Claus was one busy dude this Christmas. Besides his full-time gig delivering gifts, he had a packed promotional schedule pitching everything from smartphones to pain relievers. His performances brought holiday cheer -- and industry accolades -- to the companies using him to advertise their wares.
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