It’s a bit like your step-tracking device
But for your spending. Some days one walks 4,000 steps, others 12,000. It all depends on the day's activity and one’s willingness to walk. If one decides to walk more, they can actively make changes in their routine to achieve that goal. Similarly, spending habits vary between individuals. And we say, to each their own - as long as you can afford it.
What are spending habits?
Spending habits reflect one’s lifestyle. A habit is a behavior that is repeated regularly. When talking about spending habits, we are referring to what one spends their money on. This has been a very hot topic lately, as these behaviors can say a lot about a person. Companies know this, and often spend a lot of money to access data on their customers behaviors. The irony behind this being that - unfortunately - customers don’t have the same awareness of their habits.
A habit is almost a mindless experience. It is when one is so used to a certain action and activity, that they don’t really think about it any longer - they just do it. It’s hard to differentiate between good and bad habits, as they are both regular behaviors. The main difference is that a good habit builds towards a better future, although it could be painful in the moment. If anyone has ever woken up early for a workout, they know what we are talking about (that healthy body will thank you!). Bad habits, on the other hand, usually feel great in the moment. An obvious one is the habit to smoke. It might feel great in the moment, but in the long run it will make one less healthy. The issue with habits is that they become almost an instinct, and therefore it becomes very easy to get lost in the moment and not realize the implications of a certain behavior.
What’ s the root?
Yes, you can (partially) blame your parents. But not too much, culture and society also play a very large role as they define what is normal. This means that religion can also be an influence on spending habits, especially when it comes to giving charity. Spending habits are nevertheless still subjective, and are affected by one’s hobbies, profession, and even the TV shows one watches.
Why will your future self thank you?
Habits are a very trendy topic, and for a good reason. They define a person’s lifestyle. To break bad spending habits, one should focus on how these make one feel. The negative connotation will hopefully turn into an opportunity to change. By looking at spending habits one can figure out not just what they spend on, but also why they spend a certain way. More often than not, there’s clear triggers towards a certain type of spending behavior. That being said, the best way to gain financial independence is through making sure that one is aware of their spending habits - and Bits of Stock™ is looking to do exactly this by providing an easy-to-use platform which tracks spending habits and makes the best out of purchases by giving by fractional shares.
- Getting a savings (or even better - investments!) buddy really helps at controlling one’s spending. After all, if two people spend a lot of time together, it is inevitable that they will pick each other’s habits.
- 79% of women go shopping to feel happier.
- 60% of millennials spend more than $4 on one coffee. That’s $1,460 in one year for a daily cuppa.