Spending Habits - Are You Doing It Right?

Towards the end of the year, many of us find ourselves spending money on various things – whether it be travel, presents, or just going out more with our friends and having a good time. Spending the money we earn is a part of life's enjoyment, but being responsible about our spending is crucial. I’ve noticed many friends and acquaintances spending a significant portion of their salaries without much thought for the future, which is concerning. In an age where social pressures are high, it's easy to fall into the trap of spending for immediate gratification.

In my own life, I've experienced different phases of spending: times when I meticulously track my expenses and others when I spend impulsively. As responsibilities grow, I've realized the importance of budgeting. Without an endless supply of money, controlling my spending becomes essential. My brain, like many others, seeks the instant buzz of a new purchase, but I've learned to question how long that satisfaction lasts.

To manage my spending, I've found that tracking expenses makes me more thoughtful about each purchase. Using an app like Expenses OK has helped me, especially during tighter financial periods. This tool makes it easier to input and monitor my spending, providing a clear picture of where my money goes.

But where do these spending habits come from? Reflecting on my own experiences and observations, here are a few key influences:

1. Family Influence: Growing up, I observed my family’s spending habits, which subconsciously shaped my own. How our parents spend - what they buy, what they value, often become ours. Or, in certain instances, if those habits have been bad, we might do the exact opposite to not end up in the same financial boat or situation. My parents often used money as a way to reward me for doing well at school or other things, so that has shaped the way I view money in some ways. My Mom will also refuse to spend money on designer clothes, and I've followed suit. But, she also will only fly Business Class on long haul flights, so I've stuck to that too.
2. Cultural and Societal Norms: Our cultural background deeply influences our spending. For instance, lavish weddings may be the norm in some cultures, while others prioritize frugality. In Singapore, the lavish weddings are definitely a thing, right?
3. Religious Beliefs: Religious teachings and community practices, such as tithing or charity, have also influenced my approach to spending, instilling values of generosity and community support. Our money is not our own, at least from my religious upbringing, so I try to give back.
4. Personal Traits: My spending habits are also a reflection of my personality, which differs even from close family members. While I tend to be cautious with money, I've seen others in my family who are more spontaneous spenders.
5. Media Influence: The spending habits portrayed in media have subtly influenced my perceptions. From characters in TV shows to social media influencers, these portrayals often present an idealized view of spending that doesn't always align with reality. The reality shows where people seem to have it all really creates a false image of what we can and should buy. Coupled with social media, this creates poisonous spending habits.

Combining these reflections with practical tools like expense tracking apps, I've learned to strike a balance between enjoying the present and preparing for the future. Understanding the roots of my spending habits has been crucial in developing a more mindful and responsible approach to managing my finances.