Have you ever felt like your wallet has a mind of its own?
Do you find yourself spending money in the same pattern, over and over again, even when you know it's not the best for your financial health?
Well, it turns out that you're not alone - and there's a name for this phenomenon. Welcome to the world of spending habits, where we all fit into a certain category of spender, whether we realise it or not. But fear not, knowing your spending habits can actually be a game-changer for your finances. So, get ready to discover which type of spender you are and learn how you can take control of your wallet for good!
Keep reading to find out more…
When we say our spending behaviours are deep-rooted within us, it’s because they are not picked up overnight through a long talk session or ‘how to’ videos on YouTube. These behaviours can be considered a part of our ‘personality’.
Factoring in all the components that we have imbibed from our peers, our elders, our own knowledge, personal experiences, and more, our personalities take time to develop and to recede.
Sarah Newcomb, a behavioural scientist and author of Loaded: Money, Psychology, and How to Get Ahead Without Leaving Your Values Behind says that in the process of modifying long-held spending habits and steadying your finances, "the why is often just as important as the what”.
As explained, you cannot count the fruits until you’ve worked on the roots. So let’s get down to your triggered expense patterns and their respective corrective measures.
Characteristics - You cannot hold yourself back from spending on others.
Money Tendency - Overspending on gifts leaves you with crumbs to save.
What to Do?
Characteristics - You don’t need it, but you just need to have it at that moment.
Money Tendency - Buying small, meaningless things on a regular basis leaves you with zero savings at all.
What to Do?
Characteristics - No, we don’t mean that you save the most! This means you buy most things that represent or uplift your social status.
Money Tendency - The live-in-the-moment attitude may throw you under the bus during emergency situations.
What to Do?
Characteristics - Spendings - defined. Savings - even more defined.
Money Tendency - You tend to focus more on savings to the extent that you don’t get to enjoy even a little part of what you should be.
What to Do?
Characteristics - You end up saving everything for future/emergencies and are reluctant to spend anything.
Money Tendency - You feel nervous about spending money. As we all know, excess of everything is bad - even saving!
What to Do?
While years of habit require years of training to rewire, you can always start somewhere. In this case, you can start by inculcating these simple habits in your routine to make the most of the spend-save balance out there.