In today’s post we will look into the psychological aspect of spending vs saving. Saving can be defined in simple term as “scarifying your current spending for a better tomorrow”. Now their are few things which matters us to which side we are more inclined-Spending side or Saving Side??
Including me, we sometimes act in a hurry and spend a lot than actual need. Which actually imbalance our balance sheet. Let us see how our mind works during these decision taking period and what factors of mind actually influence us to go either for spending or saving. To identify those things, better we look at the mind pattern of individual who tend to take decision.
When we spend more instead of saving?
1) Emotion and reasoning-You notice your mind, whenever you try to spend more usually our emotions are ahead of reasoning. This makes us to spend instead of save. Emotions in the sense happier or unhappier. Both the times our mind start to stop reasoning and eventually we end up in listening to emotions.
2) Distracted status of mind-This is the tool usually marketing people utilize in a better way to sell their products. It is proven psychological aspect that person who is distracted spends more. That is the reason you notice big big banners and advertisements, showing images which usually distract our mind by wonderful slogans, campaigns, offers and bonus.
3) Limited Self Control-During spending our control on mind either to it’s low level or completely stopped.
4) Sadness-When we are sad we obviously looking for a change. During this period in search of happiness we may go on spending spree rather than thinking about saving and investing for future.
5) Disgust and Anxiety-When are into disgust and anxiety state of mind, we usually spend large than actually in need or not at all think about spending. This spending we think that actually will makes us to overcome from mental sufferings but it is not.
How to be a better spender and saver?
1) Self limitation-Plan in advance what you want to purchase and think twice whether that spending is actually in need or just for the sake of few minutes happiness you are buying. Limiting the budget of spending will actually make you aware whether you overspent or not. Hence the good plan with price limitation will work wonders in your spending.
2) Do Homework-Before going to purchase anything it is better to do your homework by comparing the product and price with the features they offer. This homework will make you to stick to your plan of product you want to purchase and the budget you are thinking of.
3) Emotional control-Self control on your emotions actually may save you lot money and makes you a better saver. Hence control your emotions while spending.
Hope this knowledge sharing will actually enhance your saving and investing habit and indirectly make you in leading wonderful financial life.