From spending big to saving strategically; your money habits say a lot about you.
Everyone has spending habits that they’ve acquired over the years, whether they’re good or bad. Maybe you like to splash the cash when payday rolls around or perhaps you prefer to store your money away for a rainy day. Without realising it, you fit into a spending profile and how you handle your cash can affect your overall well-being.
Money allows us to purchase food, shelter and essentials and if we don’t earn enough, it can have a negative impact on our day to day life. Not knowing how to save money or simply not earning enough to save can be extremely frustrating. But if you did have more money coming in, are you the type of person who would put it away into a savings account or would you simply spend it on unnecessary items?
Take this quick quiz from PayPlan to find out what type of spender you are.
How you view money
Some people are great at saving money and others really struggle. But why is it that some people find it much easier to put money away than other? Is it because of the place they live in? Maybe they have a better paying job? It could simply be down to how people view money. There’s no guarantee that if you were to change your job or where you live that you would be any better with managing your money.
When you start to view money as a way to provide opportunity and security, then you’ll start to worry less about it. Spending money frivolously and buying things to make you feel better can be quite damaging. Avoid financial troubles by being honest about how you spend money and this will take you in a step in the right direction.
Understanding your spending
To become a savvy saver you need to change your attitude and get serious. If you are spending more than you are earning then obviously this is going to cause major problems for you. Work out what you spend each month and see if there is anything you can cut back on, such as eating out every lunchtime or paying for streaming services that you no longer use.
Setting yourself a budget each month is a good way to see where your money is going. Another way to make budgeting easier is to have all your accounts in one place so you can monitor your outgoings. There are various apps you can download that will help you keep track of your current accounts, savings, credit cards and pensions all in one place.
Don’t compare your situation to others
More often than not, we compare ourselves to other people, whether it’s family and friends, colleagues or even people on social media. When we see other people buying material goods such as a new house, a new car or travelling around the world, it’s fine to want these things for yourself; but remember that everyone’s situation is different.
Try to understand the motivation behind your desire; is it because others have it and you’re trying to keep up? Or do you truly want the same things? If it’s the latter, then work towards saving for these things, as you will fully appreciate them when you finally get them.
Knowing and understanding your money habits is important as is having a healthy attitude towards your finances. Learn how to budget and save accordingly, as this will allow you to live a comfortable life and you won’t be worrying constantly about your financial situation.