Why do we Spend Money?

March 24, 2022 | Posted by: Sherry Corbitt

Money is a fundamental aspect of life, which allows us to buy food, a home, and everyday necessities. Yet there are other things outside of our essentials which we are prone to buy. Many people wonder why they want to spend money, especially on things they don't need. 

 

Why do we spend?

This is a broad question since many different things cause us to spend money. There have been many reports where we psychologically want to buy more, even when we may not need it. There is no one answer for this question, as everyone spends their money on different things for different reasons.


Things that make us want to spend money 

 

Our Emotions

One of the most significant factors that affect our urge to spend is emotions. When we are feeling low, we often think back to something that made us happy. So we can easily be motivated to buy based on feeling more satisfied. 

When to pick up on your spending habits: There is nothing wrong with spending money to make yourself happy. It is an important thing to do. Yet you need to be cautious if you rely on money to make you happy. This can lead to overspending and create a form of happiness that cannot indeed be met. You may have expectations that you cannot financially meet, and you, unfortunately, can be creating your disappointment.

 

Pursuing Interests or Hobbies

Similar to finding happiness, our hobbies and interests help us enjoy life. Some of our hobbies will require us to spend money on them, such as shopping, photography, skiing. We all have our interests, which make us who we are. It certainly is essential to embrace your hobbies and interests in life. Not only will they motivate you to enhance your life, yet they will also help you to stay physically and mentally productive. 

 

When to pick up on your spending habits: You need to set limits for your interests and hobbies, though. Although spending time on them is essential, it can also cause damage if you overindulge yourself. This can cause poor time habits, affecting how you gain income. 

 

Showing Accomplishments

Another main reason as to why we spend is to show our accomplishments. You may have a great job and want to spend money to show your career accomplishments. It could be that you travel and spend money on luxury resorts and excursions. 

 

When to pick up on your spending habits: When you spend money to show your accomplishments, you may not be able to find a realistic limit. You can become so indulged in focusing on what others think that you forget how much you have to spend. If you want to show your accomplishemnts, there are so many other ways to do so. Some include becoming more knowledgable in your field of work, trying new things, and growing your social network.

 

Finding Purpose

When you are unmotivated and don't have anything you enjoy, you may feel very bored. Many people worldwide face these feelings, especially if they have lost a job or loved one. Spending money on things can help them to try and find a purpose. 

 

When to pick up on your spending habits: If you notice that you may be spending money when you are bored, then you should re-examine your lifestyle. Consider what is causing these emotions and figure out some new activities to replace your spending habits. This can include going for walks, listening to music, or trying a new hobby.



How to Be Wise With Your Spending

It certainly is easy to lose track of your spending, yet you can be careful with how much you spend. To do this, it is crucial to have balance in your life. So no matter your reasons for spending money, you need to consider how much you will be putting towards it. Then, when you appropriately put enough towards this and savings for other necessities, you can be financially wise.

 

There certainly are many things that move humans to spend their money. However, when you focus on why you spend money, you can evaluate a safe amount and avoid financial problems. 

 

If you have any questions about spending money, please reach out to me!

Sherry Corbitt, Mortgage Broker




Sources

-Allen & Company (2021). Why Do We Spend Money? Retrieved from https://alleninvestments.com/riskandreward/why-do-we-spend-money/

-Bamboo (2020). Psychology of Spending Habits: What Makes Us Spend Money? Retrieved from https://www.bambooloans.com/blog/psychology-of-spending-habits/

-Chatzky, Jean (2018). Why We Spend Money on Things We Shouldn't (And How to Break the Cycle). NBC News. Retrieved from

https://www.nbcnews.com/better/business/why-we-spend-money-things-we-shouldn-t-how-break-ncna930616

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