Your spending habits are influenced by different factors. However that does not mean that you cannot change them.

As much as we need to save money, we also need to spend it. However, how you spend your money is also important. According to the Dr Oz (TV personality and health expert) quiz on the different spending personalities, there are three types:

Emotional spenders

This type of a spender heads to the shopping centre whenever feeling sad, anxious or having a bad day. To them shopping is a coping mechanism. It cheers them up.

Dr Oz says these people’s cupboards tend to be full of clothes that have never been worn before.

These spenders often feel guilty after their shopping spree.

Secretive spenders

Secretive spenders are aware of their income, but they are very secretive about how they spend. They tend to mindlessly buy anything and everything, without any concerns.

However, these spenders are always shocked when they see their bill at the end of the month.

Justified spenders

Justified spenders always rationalise their purchases. When shopping they always find a reason to buy a more expensive item. Their reasons always revolve around quantity and durability.

While this line of thinking can be valid and useful, it can get out of hand. When that happens the purchases will no longer be as beneficial as they sound in theory, says Dr Oz.

Catherine L ’hoste, a clinical psychologist, sees spending behaviour on a continuum from mature/careful to immature/impulsive.

“We all move along this continuum throughout our lives, falling into different categories along the continuum depending on a variety of factors,” says L’hoste.

She says these factors could include:

  • income – the more novel disposable income is, the more one would spend it.
  • emotional psychological well-being – the better you feel the less you need to spend to make yourself feel better.
  • childhood factors – children raised with a sense of deprivation tend to either hoard because they don’t trust that there will be enough or they spend recklessly with a sense of “you never know when it will be this good again”.
  • parents – how your parents behaved with money will have an influence on your spending habits.

L’hoste advises that you be more careful with money, think through your purchases and spend less impulsively.

She says you need to save for the future, particularly retirement.

“With our life span increasing but not necessarily extending our working years to meet that, the more mature/careful end of the continuum is more desirable,” she says.

She adds that it can be helpful to build in an “impulsive spending” amount to your budget that allows some impulsivity but in a planned way. This way you know you are not harming yourself by spending that money.

L’hoste says you need to understand what factors influence your spending factor and you need to know how strong its hold is over you.

“Once you understand that, you can recognize your urges and pull yourself back on course,” she concludes.

This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.