Are You A Spender Or A Saver And Why It Matters
WIthout question, I am more of a saver; conservatively and carefully planning my purchases. Some of you may be envious but I will tell you that this is not always great. My tendancy to save can sometimes deny me some of life’s greatest pleasures. Like a spontaneous dinner out with friends or an amazing but expensive concert ticket to U2.
Spenders, on the other hand, can be adventurous risk takers, never missing an opportunity to enjoy the moment. But a string of impulse purchases can get them into trouble.
Whether you’re a saver or a spender, you can learn strategies to maximize your strengths and overcome your weaknesses. A simple budget is a great tool to give a saver much needed permission to spend while tightening the reigns for a spender. Even if you don’t follow or track it religiously, having the knowledge can make a big difference. Being aware of your savings and spending gives you information and power to make good decisions. The gift of confidence to strike the right balance between enjoying today and enjoying tomorrow. For example, just knowing that you have about $200/month for entertainment helps keep you on track. Performing the “mental math” of adding up your last three bar visits leads to a better spending decision than not thinking about it at all.
My own father worked tirelessly and saved religiously to travel upon his retirement. Sadly, he enjoyed only a year of exploring before his unexpected heart attack and death. Reflecting on this experience helps me remember to enjoy some of my money today. On the opposite side, I know people who are very concerned that they will need to financially support their own parents later in life. A difficult and unexpected drain on their own planned retirement.
Finding the right balance between spending and saving is not easy but it is so worth it! Good luck on your journey and don’t forget to enjoy yourself along the way!