If you’ve ever tried to finally get organized, or to become more of a morning person, you know the first step is figuring out why you avoid putting papers away or getting to bed at a decent hour. Changing spending habits is similar — it helps to understand why they started in the first place.
Their origin can vary, according to Sarah Newcomb, a behavioral scientist and author of “Loaded: Money, Psychology, and How to get Ahead Without Leaving Your Values Behind.” “Some things related to money management are part of our personality,” she says. “Others are inherited or absorbed from our surroundings as we grow up — and the same circumstances can produce very different results, depending on the person.”
Which is to say, each person’s perspective on money has been shaped by a unique mix of factors including family attitudes, peer influence, individual experiences, historical forces and our own always-evolving approach to decision making. If you want to improve your spending habits, it’s useful to think about the influences guiding your financial decisions, Newcomb suggests.
“The why is often just as important as the what.”
Each of us can identify with a particular spending profile, she believes, and once you determine what yours is, you’re better equipped to improve your money habits. Read on to find the one that suits you best — and the advice that fits your financial personality.