For most people, planning a budget is one of the least favorite tasks to do. However, little do they realize that ingraining simple money management habits is the first and foremost step towards building a great investment.
There are many factors that relate to overspending—with credit cards being one of the primary reasons in producing chronic spenders! As a matter of fact, plastic cards are said to be the only reason leading to a dissatisfactory financial future in the UK.
Here are 5 emotional and behavioral factors to help you determine a chronic spender (or maybe yourself!)
These are people who use shopping as an alternative route to escape from unwanted feelings and emotions. You will probably find such people with goods packed and untagged in stock.
Additionally, compulsive shoppers purchase items by living in a fantasy that an item will change their lives, or bring some good luck.
Social status spenders
This group of chronic spenders shop and spend money to show power and status. If someone is buying things just because they are flashy, expensive, has a designer tag to flaunt—then they are probably one.
Image or social status spenders are often the ones trying to establish their presence and standing . They believe in spending well so that they look happy and successful. In other terms, they always want to be the showstoppers in town and love preferential treatments!
Or, bargain sale shoppers!
If a person is hooked on getting their hands on the best deals in town, then they definitely fall under this category. This kind of shopper finds immense satisfaction in driving the salesman nuts (getting the best bargain). Interestingly—it’s not about the great deal value, but more about negotiation process!
People under this category are often high earners too. Usually referred to as bulimic spenders—savings is not an option for them and they spend excessively only to fall back in the ‘I am broke’ category.
So, if you are someone or know a friend, family, or colleague with high earnings with a frequent shopping spree—then you have spotted the BULL-imic spender!
Spending on others
Or, the co-dependent spender!
People falling under this category are often the most emotional when it comes to spending. They will go out of their way to spend in love, care, support or to win over someone. If you rationalize your shopping for a friend, or tend to go resonate your behaviour for your family—then this is you!
Aforementioned are some of the symptoms in terms of behaviour and emotions to help spot yourself or someone with overspending habits.
If you want to commit towards a stronger financial future, think about the future and where you stand one year from now. What financial advice would you give to the future you? What changes are you willing to make today, in order to see yourself in a better financial situation tomorrow?—Gain power on your spending patterns (emotional and behavioural) to make the best investment for your future.