Why are you the way that you are (when it comes to money)?
There are things we all know about money–they are common knowledge. You should save for a rainy day, budget so you don’t overspend and keep your debt as minimal as possible. However, when it all boils down, our attitudes and practices around our finances are based more in history and emotion than actual knowledge. Here are the biggest things that heavily influence your spending habits:
Social Pressure
The pressure to do what your friends are doing doesn’t end in high school. We all want to belong and enjoy experiences with people we care about. Furthermore, we may want to give the impression that we are in the same financial position as our peers, even if it’s not at all the case.
Upbringing
Maybe you were taught to not talk about money, or that you should enjoy whatever you have because you can’t take it with you. Geographical and cultural differences can also influence you heavily in your formative years as you learn about the value of a dollar and the consequences of saving and spending.
Personal experiences
Someone who has struggled to make ends meet at any point never really stops looking over their shoulder, no matter how much they earn. Conversely, someone who is used to having a lot of resources, may find it very difficult to adjust to new circumstances, and find themselves spending without thinking about how to cover the costs.
Whatever it is in your past or present that leads to the financial decisions you make, give yourself some grace. Everyone’s choices are a mix of responsible and not so responsible, and that is absolutely okay. Learn from your mistakes and do NOT forget to be proud of yourself for your wins.
What do you think fuels your money decisions most? Were you taught to pinch every penny? Maybe you grew up struggling financially and you never really stopped being afraid of being broke. Let us know in the comments. And while we have your attention, visit linktr.ee/missoulabookkeeper and subscribe our podcast, She Means Business, where we talk about everything small business related.
