purchase has to be commensurate against disposable income
Los Angeles-Long Beach, CA (PRWEB) May 04, 2014
In an article published last April 30, 2014, Debt Consolidation USA lists down the top 5 spending influences in a consumer’s life. The article titled “5 Spending Influences You Need To Be Familiar With” points out that during the course of time, consumers are exposed to different triggers that can influence the spending habit. This plays a big part in maintaining a healthy financial disposition.
The article points out the top 5 influences consumers need to be aware of:
Income - The article points out that the one of the top influences on purchases are the wealth and assets of the very consumer. Knowing how much money is in the bank can lead to a different and pricier item. The idea is that people are confident that they can afford the item because of either the monthly income or the amount of savings in the bank. Consumers need to know that purchase has to be commensurate against disposable income and not the total monthly net income.
Age - Age or status in life is also a big influencer on spending. A younger consumer could have more elbow room when it comes down to cutting on expenses because by the very nature of their status in life, they only have themselves to think about. Compared to a family with 3 children, saving up could be harder because of the nature of living expense for all the members of the family.
Education - Getting an education is another spending influence as pointed out in the article. High school graduates have the tendency to get smaller income and thus, spend smaller as compared to college graduates. College graduates are able to spend more, even on primary necessities because they can afford to. They have the means to purchase higher ticket items because of the quality of employment that are offered to them
Life events - Life events such as getting a job, getting married and having children all have the ability to influence spending. These life events changes the priorities in spending for any individual.
Peer and Family pressure - This external factor contributes a lot on how consumers spend. It is most probable that spending could be influenced by people around them such as family members, friends and even their neighbors.
The article also shares some helpful tips in making smart spending choices. To read the rest of the article, click on this link: http://www.debtconsolidationusa.com.