POSTED IN ADVICE ON MONDAY, JULY 29, 2019
Do you know how you make financial decisions?
Think about the last optional purchase you made, like a new T-shirt or a candy bar from the checkout aisle. Why did you decide to buy it?
Experts have identified psychological patterns that, alone or in combination, help explain why people make the choices they do with their money – both good and bad. Questioning why you made a purchase can point out those patterns in your life, which can help you get rid of bad behaviors. Read the list of spending styles below and see if you recognize yourself in the descriptions.
- Gives lavishly to others to create emotional connections; may neglect their own needs
- Buys things because it makes them feel better now, though they may regret it later
- Views possessions as status symbols and makes purchases accordingly
- Seeks out bargains for the rush of the deal, even if they don’t really need or want the product
- Hopes for the best while ignoring their financial reality
- Blows their budget because it’s a special occasion, event or celebration
- Looks for shortcuts to wealth; may lack patience
- Uses gifts and money to control others or as a substitute for control over their own lives
- Thinks constantly about ways to get more money and may conflate money with power
- Refuses to accept responsibility for their financial problems because the system is rigged
- Fears losing money and may miss opportunities because of it
- Saves for the future and avoids financial decisions based on emotion
If you find yourself repeatedly going over budget or making purchases you come to regret, reflect on your spending habits and the profiles above. Think about how you make financial decisions now and how you’d like to change that going forward.
If you’d like to discuss your spending habits or your financial situation, fill out the form below.