Spending Attitude and Credit Cards
Generally people tend to spend more when using credit cards than cash.
What is Your Spending Attitude
Understanding your general attitude to money and your spending, is beneficial in managing your finance and in choosing the right financial product for you, particularly credit cards.
Spending attitude can be a predictor of how well you can manage your credit card debt
Answers to the questions below will guide you into understanding your attitude to money and spending?
- How do you perceive money?
- Do you see money as a source of achievement, a source of control or source of power?.
- Do you see money as a source or protection from anxiety?
- Do you have a financial plan or a budget?
- Do you like spending?
- Do you prefer spending rather than saving?
- Do you spend money without thinking?
- Do you think about the future?
- How knowledgeable are you about money and finance?
Types of Spending Attitude
- Controlled Spender
- Spontaenous Spender
- Prudent Spender
- Impulsive Spender
- Maximizers Spender
- Strugglers Spender
How to Control Your Spending Habits
Some of the poor spending habits you should avoid are
Spending without a monthly budget or plan
Spending without keeping track of your expenses
Making spontaenous and impulsive purchases
Emotional spending as retail therapy
The best way to improve your spending habit is to adopt good financial management practises like budgeting, saving, accounting for every penny earned and managing your spending.
Money Management Behaviours You Should Adopt
Good money management tips:
Budgeting
Saving regularly
Tracking and managing expenses
Regulating spending
You can take this exercise by taking the following steps
Record keeping –
- keep receipts and records of your spending,
- keep on top of your bank
- Keep record of your actual income
- Assess the amount you spend on fixed expenses
- Assess the amount you spend on flexible expenses
- Assess your total expenses
Managing Your Income or Cash Flow
- Think of ways to increase your income to match your needs.
- Think of ways to decrease your expenses to match your income
Monitoring Spending
- Check your spending and see if you spend more than you earn.
- Check you spending to see if it in line with your expectation
- Assess your emergency money
- Assess the value of the things you own.
Financial Choices
Now that you have an awareness of what your spending attitude is and your financial management behaviour.
Review our best credit cards to see which suits you.
