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When it comes to our spending habits, the vast majority of us don’t think too much about how much and how often we spend. We don’t realise how we are driven to buy certain things just out of habit, and as a result this may have been the reason why we’ve driven ourselves into poor money-management routines.  Hopefully this guide shows you which of the 4 E’s of spending personality type you fall into, and ways to make smarter spending habits. 

- The Emotional Spender

Emotional spending probably became an ongoing cycle the moment you got your first job.  Realising you have full control over what you can buy causes you to think you can buy anything with money. From lavish gifts to regular shopping sprees, buying things is what you think gives you ultimate happiness.  The downside of this is that once you receive your credit card bill, reality settles in and a cloud of guilt hangs over your head.  It’s time to realise that money isn’t the answer to everything. There are plenty of ways you can treat someone, or have a fun day out in a cost-effective way.  A day out at the beach, going for a hike or checking out the local free events is a unique experience that doesn’t intend to leave you broke at the end of the day.  

- The Ego Spender

The Ego Spender financial personality type always finds themselves stressing over the amount in their account, even if they’re not struggling financially.  Working overtime and pushing yourself over the edge for a pay-rise just so you can buy the latest and most expensive gadget is never a good idea for your bank account and most importantly your mental health.  Instead of putting ridiculous time deadlines on yourself in order to get an expensive item, why not try effective budgeting and long-term savings plans. This way you can balance your everyday expenses but also accumulate enough to treat yourself every once in a while.  By effectively managing your income, you won’t have to stress again about your money. 

- The Experience Spender

The experience spender is your typical free-spirit who decides to travel across the world on a whim or take a year-off from work without thinking twice.  Spending big on experiences can come at a big cost once it’s over, which can be avoided with a little bit of pre-planning.  With services like Airbnb and Scoopon which provide discounts in all things travel-related, there are plenty of ways you can still have an unforgettable experience, without emptying your savings account.  You’d be surprised at how small changes in your spending habits can allow you to experience the same things at a significantly cheaper price.

- The Economic Spender

This type of spender is what we all aspire to be. The economic spender is very finance-savvy, has full control over their money; knows how to budget, save, invest and spend effectively.  These habits aren’t learnt in a heartbeat, but rather are practiced and developed into habits over time.  Think of it like flexing your financial muscles. All it takes are small baby steps, whether it be cutting down on eating out and coffee-runs and then into bigger changes like developing a personal budget or investing more into super.  Over time, money-management won’t seem like a difficult task anymore, but rather part of your daily routine. 

Whether you fall into one of these financial personality types, or are a mix of two or more, small changes to your spending habits can make a world of difference and give you the inspiration to set solid financial goals. 

Important information

Information on this website is general and has been prepared without taking into account your objectives, financial situation or needs. You should consider whether this information is suitable for your objectives, financial situation and needs before acting on the information provided.