WHICH OF THESE 5 MONEY SPENDERS ARE YOU?
Ask a room full of people what money means to them, and they’ll give you a variety of answers. Some see money as vital to life and others play down its importance. While everyone has their own relationship with the almighty dollar, people generally fall into one of five types of money spenders. See where you sit on the money spectrum.
Big Spender
If you like to shop and spend on yourself and others, you fall into this category. The big spender has no problem pulling out cash or plastic if the purchase seems right. You tend to look at money as a vehicle for bringing yourself and others pleasure. The upside of being a spender is that you enjoy life and what it has to offer. The downside is that you may overspend when you’re feeling sad or bored. Some big spenders have a shopping addiction and as a result neglect to think about how much money is actually available before making purchases.
Penny-Pincher
The polar opposite of the spender is the hoarder, who believes in saving money at all costs. If you fall into this category, you most likely keep track of every penny that comes in and goes out, and you’re cautious with your finances. Many positive aspects come from pinching pennies. You tend to have a nice emergency savings cushion, good credit and very little debt. On the negative side, hoarding tends to come from a deep-seated fear of never having enough, which means that you probably deny yourself things that you want and even need. You may also come off as cheap to friends and family.
Thrill-Seeker
This type of money spender goes a step beyond spending and gets a thrill from overextending and stretching financially. Such a person makes an investment in a business or a beach house even if it means eating canned soup every night for dinner. Thrill-seekers tend to be free-thinking entrepreneurs, who look at life as a game and money as the playing pieces. On the upside, when you’re a thrill-seeker with your money, your financial journey is an exciting one. Living with such a mindset means that each day is a new adventure. On the downside, thrill-seeking is risky. If anything goes wrong, you stand to lose a lot of money.
Security-Craver
If you’re a saver and find yourself constantly checking your balances to make sure you have enough, you crave the security that you feel money offers. While you aren’t afraid to spend money like the hoarder, you do take your time making a commitment to purchases, especially large ones. And you must have an overflowing rainy day fund. While this type of spending has its definite advantages, including the fact that you probably won’t find yourself in financial trouble, the urge to check and recheck your safety net can become compulsive.
Idealist
This type of money spender thinks of money and consumerism as unsavory and the root of many of the world’s problems. If you’re such a spender, you prefer to dedicate yourself to creative pursuits that don’t focus on money. You’re likely to ignore your finances and pay for necessary items quickly—then jump back into more “important” matters. This type of spending has its advantages. When you take the focus off of money, you tend to notice simple pleasures, like sunsets and how excited your dog gets when presented with a treat. On the negative side, such a mindset is often impractical. It’s nice to give the dog a treat, but you forget that money is needed to buy the treat.
Whatever your money style, it’s important to understand your motivation so you can make informed choices about spending your hard-earned money.