We always stress upon how much important it is to manage your finances and build up your wealth. The more you’ll save and invest, the higher are the chances you’ll reach your wealth goals earlier.
And the most common barrier in building wealth is OVERSPENDING!
We have our own beliefs and plans when it comes to saving and spending. For example, some people like to spend everything they make every month, while some like to save a major chunk of their salary.
In this article, you’ll learn about the different spending psychologies and personalities that’ll make you aware of the financing lifestyle you want to choose.
7 Types Of Spenders – Which Type Are You?
You might be aware of the fact that different people possess different spending personalities. For example, some like to purchase a brand new Lamborghini on their birthdays, while some like to save every penny they make.
Whatever your spending approach is, there’s always a better way to manage your finances and build some long-lasting wealth. And this article will help you in understanding the different types of spenders.
The Heavy Spenders
Heavy Spenders or Big Spenders like to possess every item they can buy off. They like to make a big statement with their purchases.
Whether it’s a luxury cruise trip or the latest smartphone, premium clothing, or high-end vehicles, the Big Spenders are always first in the buying queue.
They’re not afraid of taking risks and enjoy their life to the fullest, as long as money is there to serve their needs.
- Almost 90% of the Big Spenders are low on savings. Their attitude of spending aggressively makes their lifestyle dependent on paycheck to paycheck. This lack of money management can lead them into trouble, and they may fall into a debt trap
- It’s important to check your finances when your spending is way too higher than your savings. Always keep an emergency fund for yourself to deal with uncertainties in life
Like the Heavy Spenders, Shopaholics also love to do a lot of shopping. However, they do not resemble the Big Spenders who are known to buy anything in the town.
Rather than making a statement of their every purchase, they like to spend the money on themselves. They also have a tendency to be easily influenced by others.
Shopping becomes a kind of addiction for them, so you’ll find them on most running sales. It’s fine to say that their finances are also disorganized like the big spenders.
- It’s good that you like to do a lot of shopping. But it’s also important to know when you’re getting addicted to shopping. It’s easy to buy every product on a mere screen of a smartphone, and you should know when you’re exceeding your spending limit
- It’s okay if you want to buy the latest products, but first set a definite amount (dedicatedly for shopping) on your monthly piggybank, and never exceed that amount
Also Read: 7 Colors Of Success
The Savers are exactly the opposite of Heavy Spenders.
They find pleasure and great affection in saving money. They’re very conservative with the things they purchase and treat bucks like their own kids.
The savers find themselves uncomfortable whenever they come in a position to spend money. So they always look for bargains and discounts when they’re in a position to spend money.
You won’t find savers making luxury purchases or making big investments in the market. However, they have a good amount of savings in their banks, which they quite appreciate.
- There’s nothing wrong with being an aggressive saver. However, one should know the fact that too many savings can delay the experiences which need to be enjoyed at a certain age
- Even if you save most of your monthly salary in your bank account, it’s advisable to put some money into investment so that you keep up with the rising inflation
The Deal Seekers
Well, you can also call them discount hunters!
These people are mostly savers in nature; however, they make decent purchases if things are available at a discount. For them, it doesn’t matter how much time it will take to get the best deal, as they always want the stuff at a discounted rate.
You can find them surfing coupons websites for hours in hopes of getting a discount on their purchases. However, they don’t spend everything they’ve got and tend to save a fair amount of money while shopping.
They’ve all the email alerts set to their mailbox to grab the deals if they’re at a lesser price compared to the original price.
- The Deal Seekers are quite a common spending personality. However, it can cost a lot of time and energy every time you want to purchase anything because it’s hard to find discounted coupons easily
- Sometimes this discount-seeking habit goes quite wrong, and you buy those things you don’t even need. You just bought them because it was 50% off in a sale
The Boredom Busters
Boredom Busters are a lesser-known spending personality, but they do exist.
They can also be defined as emotional spenders. Emotional spending happens when you buy something out of boredom, stress, or in an unhappy mood.
And interestingly, most of the time you end up buying something which you don’t even need for yourself. This often leads to unwanted spending, and your savings take a toll.
- There’s nothing wrong with being a boredom buster. If you’re controlling your purchasing impulse and buying only relevant stuff that you actually required, then you’re a sensible spender
- Emotional spending doesn’t mean to buy in a stressful or unhappy state. You also spend and shop when you’re happy with full of positive emotions
Also Read: How Sleeping More Can Make You Successful?
Investing seems a bit challenging and hard to people. But have you ever encountered with an Investor?
Investors are the ones who are extremely future-oriented and loves to plan everything about their finances. As a result, they always keep a check on their bank balance and their stream of income.
You’ll always find them looking at stock indices on their screens, and they’re easy to spot in the crowd. They always pay their bills or EMIs on time as they love planning their expenses in advance.
Their end goal is to make more money out of their investments, and most of the time, you’ll find them dealing with brokers. It’s hard to predict how much they spend on their lifestyle as they are more focused on buying assets rather than purchasing materialistic stuff.
- Investing is one of the ways that can improve one’s financial lifestyle. While you can make some good money from investing, it comes with an equal amount of risk in losing your investment
- It’s important to understand that investing is not something that you can learn overnight. It’s a process that can makes you money if you’re ready to devote your time, energy, and patience to learn the science behind investing
Gamblers! Those who are never afraid of trying their luck to win some monetary value. Be it a lottery, a casino, or a horse race; gamblers know how money works.
Their attitude towards gambling might prove beneficial or misfortune for them depending on how well they manage their stakes.
They are always motivated to get rich in a short period. But, unfortunately, this often led to addiction, and over-spending becomes a big problem for them.
- Gambling is legal in many parts of the world, but that doesn’t mean you will going to make money every time you place a bet
- If you still want to try your luck in gambling, always having a separate set of money outside of your personal funds is advised. So that your finances don’t vanish if you lose every dime you’ve kept for betting
So, what type of spender are you?
Let us know in the comments section what traits you possess about spending your money!