We all have different spending habits.  The same can be said for our savings habits. 

How do you spend money?

  1. Fast – Burns a hole in your pocket
  2. Wisely – Got it all covered
  3. Rarely – Moths live in your wallet
  1. Fast – Burns a hole in your pocket

Spending money as soon as you get it – sometimes spending it before you have it. People who do this often feel they get what they want – but do they have financial security?

This is common practice, but can cause problems when unexpected expenses occur.

  1. Wisely – Got it all covered

Between spending habits 1) and 3) is ‘Wisely’.  For me this means spending money on what I want like holidays, products that make a difference to my life. The price of these items aligns with my budget. The budget aligns with my other expenses being covered first.

  1. Rarely – Moths live in your wallet

This term refers to people who open their wallets so infrequently that moths fly out. From the times where we used cash and Donald Duck cartoons were in newsagents. Miserly and Scrooge like are other terms for this. People who elect to save every penny may have large investment portfolios, but is this at the expense of the quality of their life?

All of these categories are relative and will be translated differently depending on your financial situation.

Spending money is something many of us excel at.  With internet shopping we literally have the world at our fingertips.  Some of us love shopping therapy.  Others of us are saving for a rainy day.  All of us shaped by different drivers. 

Currently COVID has us in or homes taking online shopping and parcel delivery to new levels. These levels are literally involve delivering parcels at the rate associated with Christmas – every month. People are getting a buzz from doing online shopping with their partners or family.   This is the latest way to get that shopping therapy  – without the requirement to walk through the malls.

I am a saver. I attribute this partly to being an impoverished University student. This attribute has continued to shape my life. Personally, I believe it has put my spending habits into the ‘Wisely’ category. I feel I have a balance between short term and long term savings methods that leave me with money to spend to enable my family to love their lives.

Always be aware that items that have your friends and family loving their lives are not necessarily expensive. For me I find out what my friends and family want in their lives and then work out how to make this happen.

These spending habits are from my observations. I am not a financial advisor. These are broad suggestions and not based on individuals’ specific circumstances.

What are your spending habits?