A lot of us see ourselves as rational decision makers when it comes to spending money. But the truth is that many of us have emotional attachments to how much we spend—and what we spend our money on. So what is your spending persona? Check out these motivations related to spending money from savingadvice.com to find out.
The Happiness Seeker
You make purchases with the belief that doing so will improve your life. While the purchase itself may give you some instant pleasure, the feeling of happiness doesn’t last long. The result is that you end up having to purchase something else to find more “happiness.”
The Impatient Purchaser
For you, it’s all about instant gratification. You see something and want it immediately, regardless of whether you have the money to afford it. A better strategy? Waiting until you have the funds to afford what you want—even if that means delaying your purchase.
The Guilt Shopper
Do you purchase “stuff ” to compensate for your feelings of guilt? Then this persona may help explain some of your spending habits. If you tend to spoil your children because you can’t spend time with them or buy your spouse extravagant gifts to “make up” for bad behavior, try to gain a better understanding of why you are having guilty feelings. And then do something to change the feelings of guilt instead of purchasing items.
The Keeper Upper
If you’re spending in an attempt to prop up your image and keep up with your peers, now is the time to stop and work on being satisfied with who you are instead of putting on “appearances.”
The “Yes” Shopper
Do you find it hard to say no because you don’t like dealing with confrontation? It’s ok to give in if you can afford it—and you don’t mind being manipulated. However, if you are spending above your means and being mistreated by those looking to gain at your expense (literally), then it is time to turn your “yes” into a firm “no!”
The Unmotivated Shopper
Do you compare prices before you shop? Or are you too busy or too unmotivated to save where you can? If you just “buy on the fly” instead of researching more budget-friendly alternatives, you are likely paying too much for things—which can add up over the long run.
The Optimistic Overspender
If you spend with the expectation that you will have more money soon, you may fall into this category. If you are expecting a raise at work, the smarter alternative is to wait until the money is in your bank account before spending it. Otherwise, you run the risk of spending more than you earn, which is never a good idea.
The Credit Hound
Some people who don’t have the cash in their hand don’t see credit cards as real money. Why should they? They can buy something and only pay 3 percent each month back to the credit card company. This can quickly get you into financial trouble, because eventually it all needs to be paid back—with interest.
The Entitled Shopper
Some people shop because they believe they deserve things, even if they don’t have the money. The reasons someone might feel a sense of entitlement can be numerous. Maybe they were poor growing up, or they scrimped and scraped through college and now have their first job. Whatever the reason, feeling entitled to something you don’t have the money for will cause a lot of financial distress.
The above list includes just a few reasons behind overspending, and you may fall under more than one persona category. Having an understanding of your spending habits can help you manage your money more effectively, and even help you eliminate problematic spending habits over the long term.