Your spending behavior is how you regularly, almost automatically use your money. Of course, inherent in one’s spending behavior are the times when one does not spend, i.e., saving behavior.
We all see and use money in different ways. As a result, everyone’s spending habits are a bit different. We tend to talk about spending behavior as part of a larger money personality: how do you see money and how and why do you use it? We develop our unique habits and attitudes about money through a variety of sources. These include:
How we see and use money has broad effects in our lives. It plays a big part in our relationships (friends, dating, marriage, etc.), in our job and career and, of course, in our finances. Yet many people have never really stopped to consider why they do what they do with money. This means that people may, for example, fall into the same old frustrating patterns around money. It may be:
Without understanding your spending behavior, you are likely to keep doing what you’ve been doing. That’s why it’s helpful to do a money personality assessment. Like any personality assessment, it’s helpful because it lets you see the forest rather than just the trees. It helps you set goals. And it brings new awareness to certain traps, challenges and weaknesses you may have but don’t realize.
When looking at spending behavior, people often resort to very basic blanket labels. Your spending behavior either makes you a spender or a saver. But people are more nuanced than that. That’s why Money Habitudes shows people a unique combination of money personality types (we use six types). The Money Habitudes results are easy to understand and give people richer information to look at themselves and their financial habits. The more nuanced look leads to richer discussions and real epiphanies where people come to really understand their own spending behavior. It’s easier to talk about money when we can tell a full story; labeling one’s self as simply a “spender” tends not to allow for that. For this reason, Money Habitudes is often used by financial educators, financial counselors, money coaches, financial planners, therapists and career counselors.