Where The Money Goes: Influence Of Spending Patterns

The global pandemic has put the world into a crisis. Not only has it started a race for survival, but it has also affected the spending and savings patterns of the population.

As time goes on, more and more people are suffering from financial uncertainty. In fact, it wouldn’t be inaccurate to say Canadians are acting hastily to gather wealth. And while doing so, they are making quite the wrong decisions.

We are completely aware that it might be challenging to track where your money is going when you can’t really get a sense of how your paycheque finishes in the first few days of the month. Surely, you can get the secured credit card Canada service to set things right.

But still, you need to understand how your spending patterns influence your money to save your present and future.

Here’s what you need to know to make things work in your favor:

Psychology Of Spending Money

You may not even be aware of how far you have sunk into the muck of toxic spending at times. And by far, the biggest instance of it is the COVID-19 stocking and impulsive buying. Of course, there can be other reasons:

  • Some people spend money to feel the happiness it gives,
  • And others use their finances lavishly to make up for their insecurities.

Nonetheless, the retailers use this toxic overspending psychology of consumers to encourage them to spend even more.

Surely, age, wage, and lifestyle stage also play an important role in deciding your spending patterns.

Where Does the Money Go?

Have you ever wondered where your last paychecks went when you still struggled to meet the necessary living needs? You are not alone! So many people battle with this situation at the start and end of the month.

  • Discounts,
  • Promotion sales,
  • Free restaurant points,
  • Gas miles, and so much more.

We tend to use credit cards irresponsibly to avail of all these offers. And then we think we are the ones who are making all these wise decisions.

Freebies make us think we are in charge of our money!

Do you believe that? Think again!

Mindless spending becomes easier when you get to enjoy the credit card perks. But, considering the long run, it might not be so true. And then there you are, looking at your statements, trying to find the answer to where your money went.

Because clearly, it’s not in your account. :p

Here are some tips to get the answers:

1.  Does Your Convenience Drive You?

Are you someone who makes purchases right after seeing an ad or sales promotion? This is for you!

  • Did you buy a new jacket just because it was on a 50% sale?
  • Did you stock up on some groceries because you got a good 1+1 deal?

But isn’t buying in bulk and during a discount a sensible purchasing strategy? Of course, the promotion was launched so that you may take advantage of it. Right! Was everything you purchased truly necessary, we now ask?

2.  Do Your Emotions Play A Role In Spending?

Emotional spending varies, but one thing is to confirm it does play a role in deciding your spending pattern. For example, say you saved $350 last month but felt sad and spent almost $200 instantly. Get the point?

  • A depressed, gloomy, and sad person spend more money.
  • Stress can trigger toxic spending, thus ruining all your efforts of saving money.

You might have already noticed that your impulse buying reaches the sky whenever you’re feeling under the weather. And all you wanted to experience was the happiness spending money lavishly gives.

3.  Do Your Insecurities Empty Your Wallet?

People who turn rich from poor tend to spend more as they once didn’t have the privilege to do so. Yes, no cap! Of course, the habit dies down as you increase your wealth. But the phase when you are just moving to be richer, you can’t seem to control yourself from spending on things you’ve always wanted to buy.

  • Sometimes, the struggling life of your parents makes you grounded,
  • Other times, it makes you a rebel who doesn’t want to fill in their steps.

Whatever the reasons, all these insecurities and emotions can push you into a loop of bad spending patterns.

Influence Of Spending Patterns

There would hardly be a soul in the world that doesn’t know saving money is important, financial stability is essential, and bad spending habits won’t do any good. But, it’s also true that only some of you think seriously about it.

Like, not just panic-thinking, but actually doing something to change your ways. If you want your spending patterns to work in your favor, you need to apply tips to handle your finances better.

1.  Bad Habits Generates Bad Outcomes!

If you don’t have budget-friendly planning, emergency savings, and retirement accounts, trust us, your future self will suffer more than ever. Because if you spend lavishly on a tight income, you can never save enough to have financial stability.

Don’t get us wrong! We aren’t jinxing your life but only stating the facts.

  • Buy what you need,
  • Don’t get tempted by the marketing,
  • Plan your financial future wisely,
  • Pay your taxes and clear your debts,
  • Put something in your retirement account monthly,
  • Plan for emergencies, etc.

These are some of the tips you can follow to ensure your future self won’t have to struggle with money.

2.  Your Financial Behavior Affects Your Money Management!

Kristy Archuleta, a finance professor, says that almost everyone knows what they should do with their life. But, not everyone takes the stand actually to implement what they need to do.

  • You know you can’t rely solely on your pay cheque but do you work extra to generate passive income?
  • You know you need to have a 6-month worth emergency fund, but have you planned your finances to do so?
  • You know you must prepare for retirement early in your life, but have you decided to create the fund and fill it?

These are some of the questions you need to ask yourself so that you can set your financial behavior before it’s too late.

Know Your Spending Patterns

You don’t have the Aladdin lamp to ask the genie to give you endless money. You don’t have the magic to build gold whenever you want. So the only option for you is to understand what you are doing with your money to plan what you should be doing.

1.  Identify Your Triggers

Predicting spending triggers can be made easier by identifying circumstances where you’re most likely to spend extra. Then, once you are aware of these factors, you may devise strategies to prevent them.

  • Your stress coping mechanism might be online shopping,
  • Your anxiety reliever might be delivering food.

You have to find what makes you spend more if you want your spending patterns to influence your life positively.

2.  Focus On The Switch

If you can’t seem to control your spending when you use a credit or debit card, you might want to switch back to cash for some time. Yes, there’s no bad thing in trying new things. Or, if you don’t want to skip the rewards, here’s an easy way:

  • Make your bigger purchases with the credit card to earn some points.
  • Then, use your cash for all the smaller payments like fast food, coffee, stress strolls, etc.

This way, you can easily categorize and prioritize your money. It can also help you stay grounded and find ways that can improve your financial management.

3.  Have A Money Mindset  

Ask yourself if you value the money you have, if you’re happy and content with the way you spend, and if you are satisfied with your living style. These are the questions that can give you an insight into your money mindset.

  • The choices you make may also be influenced by the views and behaviors of your parents. Most kids adopt the habits of their mother or father when it comes to handling money.
  • If your friends, spouse, parents, or the people around you have bad spending habits, it’s only natural that you’ll do the same.

It’s crucial to understand these behavior patterns and their origins before trying to change them and develop better money management skills.


Let’s finish this comprehensive guide with a short Q&A session. We have picked these questions from the Google PAA. Here you go:

1.  What influences how you spend your money?

A variety of factors, including the daily financial habits we adopt, influence our perceptions of the world. They can range from parenting skills to external influences like the media, influencers, and friends.

Also, whether you have a spending pattern or saving habit, whatever you do with your money is still somewhat influenced by the people around you.

Note: Not all your negative money management plans are the results of your parents or another family. So, you shouldn’t blame anyone as you made the decision in the first place.

2.  How do you spend money wisely?

Practicing good money habits is essential to having good spending patterns. So, here are some helpful tips to ensure you are on the right financial path:

  • Stick to a spending plan,
  • Create personal goals,
  • Try to switch between credit cards and cash,
  • Avoid toxic spending and overspending,
  • Make a list of things you need before going shopping.

Mainly, you must train yourself to stop being influenced by external or internal factors that can lead you astray from the saving goals.

3.  What do people spend their money on?

Where your money goes depends on where you spend it! That’s a given, of course. But here’s a rough calculation backed up by the facts:

  • Grocery: More than $7300
  • Housing Schemes: More than $21,400
  • Clothing: More than $1400
  • Transportation: More than $9800

You need to find your spending triggers to get rid of them. Of course, how much you spend varies from time to time, but if any of the above-mentioned categories make you spend more than you should, you need to plan things again!

Do you have any other queries? Feel free to let us know and we’ll be more than happy to find the answers for you!

Final Thoughts

Rich become richer, and the poor become poorer.

That’s the common conception we all have. In fact, because of this, most people don’t even try to change their spending or saving ways and overall living style. They have a misconception that only wealthy people can earn and invest in deciding where their money goes.

However, the internet is filled with people who went from rags to riches with their efforts and money-making mindset. Oprah Winfrey, Warren Buffet, Samuel Walton, Andrew Carnegie – there is an endless list of names in every industry.

These are the people that worked hard to change how they handled money. If they can do it, so can you! Of course, you are not alone! Read this guide and find what you need to know about your spending patterns and how to change them to work your finances in your way.

Huynh Nguyen

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