A big part of managing your budget and controlling your spending is understanding why you spend your money. It can depend upon values, personality, priorities, psychology, etc. Examining your actual spending is one thing (and an important step in building a budget). But you could also benefit from understanding your spending personality.
How to Identify Your Spending Personality
Which one best describes you?
- Impulse Spenders: People who buy items without planning their purchase and often buy things they don’t need.
- Passive Spenders: These individuals don’t like to shop and usually buy items without comparing prices or asking questions.
- Avoidance Spenders: People who shop to avoid/escape dealing with the stresses of daily life.
- Therapeutic Spenders: In direct contrast to avoidance spenders, these individuals shop to cure what ails them. In this case, spending is the solution, not the escape.
- Fanatical Spenders: They are so busy looking for bargains that they may not realize all the time and energy that they’ve spent outweighs the bargain itself.
- Esteem Spenders: People shop for things that they think will impress others, thus boosting their image and esteem.
- Recreational Spenders: These individuals shop to kill time.
- Utilitarian Spenders: These individuals shop only to fulfill their needs, not wants.
Once you become conscious of what type of spender you are, you can begin to examine your spending choices with that in mind. Maybe you’ll realize that you’re shopping on an impulse, or in an effort to build esteem. Whatever the case, awareness is the first step towards change. Think about your purchases relative to your budget, and don’t let your personality empty your bank account.