Sometimes our expenditures become too ‘unnecessary’ and when we think about the consumption frenzy we are in, the line between which of these expenditures is important and which is unnecessary can become even more blurred. Most of the time, although we want to use our money more wisely, we do not agree on how and according to what we will do this and where we should start.
So, can we really use our money wisely? The three questions we’re going to talk to you about today can help you explain why you’re running out of money so quickly and understand what you can do to improve the situation.
It may be possible to change the way we spend money
Answering these three questions can give people insight into their spending and help them change their behavior in the future, according to a new study by the University of Georgia. potentially helpful:
- Can I predict situations where I could spend more money if I wanted to?
- Do I know what I should do differently to better manage my money?
- Do I know what motivates me to spend or save?
Respondents, who were asked these questions and 230 of them answered positively, also gave information about their money habits, such as how often they set aside money for retirement or pay their credit card bills in full. In addition, the participants’ financial knowledge on issues such as stocks and inflation was tested and their concerns about their financial situation were asked.
After analyzing the responses from the participants, the researchers observed a link between how people think about their finances and their financial behavior. As a result of the study, it was found that improving financial knowledge, finding motivation to change spending patterns, and reducing anxiety about finances resulted in increased positive financial behaviors.
“We can all think about things we know we should do but don’t do,” said Kristy Archuleta, a professor in the College of Family and Consumer Sciences and lead author of the study. “For example, I know I have to get up and work every day. I know I should eat more fruits and vegetables. But am I doing these? For me it depends on the day. The same goes for our money.”
So what exactly are the benefits of these questions?
On the other hand, identifying situations where you are likely to spend more, Archuleta, who works with financial coaches and planners to help them better assist clients, says, “Maybe you know that when you’re stressed, you’ll spend more money because with that stress. That’s how you deal with it,” he says, adding, “So maybe you should get up and go for a walk instead of sitting at your computer and looking at Amazon.”
Understanding what drives you to spend or save means making lasting changes to your budget. can provide a source of motivation to do Knowing what’s going on can make your money-saving habit become more regular and increase. The three-question assessment we mentioned above can serve as a good starting point to start evaluating why you are doing what you do with your money.
“Take, for example, the statement, ‘I know what I need to do differently to better manage my money.’ That’s great. Follow with a question like: What is something you can do today to help you do this?” Archuleta noted, “Maybe the answer to this question is to prepare lunch before work so that you don’t have to spend money on eating out. What is the only thing that can be done? What motivates you?” uses expressions.
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