Thursday, August 16, 2018 9:00AM / Rbn-Media
The best way to evaluate your own spending habits is to see the spending habits of other people. For instance getting a phone bill of $100 might seem a lot to one person but for another, it is just normal. Everyone has a different perspective on what they consider what is too much to spend on different commodities.
Knowing the spending habits of other people will help you know how you could improve your finances and stop yourself from doing the same mistakes as others.
Spending Habit of People: How does it Shape Up?
A habit is an acquired behaviour pattern that is followed by irregularly. Habits are largely influenced by what is around us. The following are some factors of how spending habits are formed:
· Culture and Society
Different societies dictate how people spend. For instance, if one is born in a wealthy society then likely the chances are that person will spend more. Another one who is raised in a poor family then the spending habits will be different from the latter. A person in Asia will have different spending habits than a person in Europe.
· Influence of Other People
Other people deeply influence how you as an individual will spend. If a person lives with people who spend a lot then they will also spend much more.
· Religion and Spiritual Beliefs
Religion has a very strong influence on how people spend. Some will give out tithe, alms, donating to charity and getting involved in traditional events that requires giving. If you are more into religion, you are likely to donate more to its cause. Churches, for instance, receive a significant amount of donation right through the year.
· Media influence.
There are thousands of advertisements every day that influence how people spend. The celebrities in the media also have an influence on how people spend for instance, how many times do you see celebrities going shopping? Or how often do they eat out? They have an impact on people and that is why they are called celebrities.
America is a good example of a country which influences the economy through the spending habits of its people. In 2009 Americans spent 1.13 trillion on discretionary needs. The data collected was based on an average American income of $63,000.
Spending Habits over Time
While it is easy to segregate spending habits of people according to their needs and desires, it could get difficult to do so over a longer period of time.
However, as time progresses the spending habits become more natural and part of the lives of people. Creating a new normal becomes so difficult, breaking from spending habits that have no benefits. People have to understand that forging better money habits is not just understanding what you spend but why you spend.
As an individual, understanding other people money habits makes you understand how to save, invest and forego debts. It is advisable to surround yourself with people with good spending habits. They will help you become financially stable.