Tithing and contributing money to one's church, for example, become normal spending habits. Many faiths emphasize almsgiving or charitable giving. Our distinct personalities and life experiences also have a role. Two siblings reared in the same household may have drastically different spending patterns. Gender also plays a role: Women are typically responsible for household expenses and will therefore spend more than men.
Here are some other natural spending habits:
Spending more on special occasions such as birthdays and holidays. These can be fun times, but they can also be expensive if you go crazy with the gifts. If you're having trouble keeping track of your expenses, set a calendar event for when each month's bills are due, then keep an eye on your receipts after that date has passed. You might be surprised by what you see!
Spending more on items that make you feel good like meals out or gifts for others. This type of spending satisfies a human need for pleasure and happiness. It can also be easy to get into debt because you want to give your friends and family more luxurious things. Try not to overdo it though, or you'll never get ahead financially.
Spending more on needs vs. wants. Needs include food, shelter, and clothing, while wants are luxury items such as new phones or movies.
Spending habits are frequently influenced by their surroundings. You spend the same amount of money under the same conditions. Because it is a habit, it may seem so natural and instinctive that you are unaware of it. You usually spend a lot of money as soon as you are paid. This may imply treating your family to supper every paycheck. Or it may be buying cigarettes or alcohol. The idea of saving money does not come naturally to most people. They must be taught how important it is to save.
People also have similar spending habits for another reason: because they share common traits. If you look around yourself, you will see that there are certain types of people who have the same spending habits as you do. For example, if you are in a poverty-level income, it is very likely that you will spend what little money you have wisely. You won't be able to afford luxuries, but you will manage. If you have enough money, however, you will probably spend it all on frivolous things like coffee and cigarettes.
There are two ways people can share the same trait: because one person is born with the trait, or because they learn it from the same sources. For example, children tend to spend their money idly because they have no choice but to put everything they earn into a savings account for when they are older and can support themselves. Adults tend to spend whatever little money they have quickly because they don't know any better.
Spending Habits Examples
Spending habit is a frequent activity that affects how a person utilizes their money to meet their desires and requirements without exercising any control. It can be an unhealthy spending habit that leads to debt or a healthy one that allows a person to achieve their goals through savings and investment.
An example of an unhealthy spending habit is when someone spends more than they earn. This may lead them to use credit cards or borrow money from others to pay for their purchases. The more we spend the less content we are with our lives and the less satisfied we feel with ourselves. We need to learn to live within our means and stop buying things we cannot afford.
A spending habit is something that has been adopted by most people at some point in their life. It begins with early signs such as asking for discounts, making payments on time, and increasing your savings rate. These are all positive changes that show that you are becoming aware of how much you spend and try to cut back on unnecessary expenses.
The next stage is when you start limiting your daily purchases. This is called budgeting and it helps you understand what amount of money you have to spend each month on essential items such as rent, food, transport, and phone bills.
Or it may be going out with friends after work every Friday night. Either way, your daily life includes spending money on things that do not affect your health.
Spending money is also affected by your social circle. If most of your friends are wasting their money on luxury items, then why would you want to be different? Your peers will expect you to join them, so you might as well match them. Finally, your income is likely being spent on products that have nothing to do with you. For example, someone else could be making money selling drugs and spend all his or her income on buying more drug turf. All this other activity exists in order to make money, so why would you want to be different? Following these examples will help you understand how spending money is like an addiction.
Spending money is an addiction because it gives you a feeling of pleasure and happiness. Once you start spending, you cannot stop until you run out of money. This is how addictions work: they give you a quick hit of dopamine which makes you feel happy and gives you a sense of gratification.