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Are You a Spender or a Saver?

Personal Finance

March 14, 2022

Figure out your financial personality to make more balanced choices.

Financial decisions are made based on emotion a lot more often than you may think. Some people fall into decision-making patterns that begin at a young age or follow in the footsteps of family habits. Being aware of whether you are typically spending freely or saving for a rainy day is important to make better, more balanced financial decisions that help you to reach those long-term goals.

Are you the type of person who knows exactly how much change is in your pocket or wallet, shops grocery sales with coupons and does not buy clothing unless it needs to be replaced? Or are you one who likes to be first in line to dine at a new restaurant, orders daily Starbucks and considers paying off your credit card a long-term pipe dream? While many people are somewhere in between spender and saver, it is important to understand your financial personality.

The Spender Personality

‍If you are a spender, you likely are carefree and focused on the present. You may not experience any guilt from making unnecessary purchases. You likely find spending fun and may have a sense of pride around buying items. You may also be spending to fill time or a deeper need.

Consider these tips:

Automate transactions including regular transfers from checking to savings
Spend with cash, not credit; pay off credit cards monthly
Fill your online cart but wait a day to purchase to avoid buyer’s remorse
Consider how long you will have to work to pay off a purchase

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The Saver Personality

‍If you are a saver, you likely believe being frugal is the right thing to do. You may go to great lengths to save and not waste. You may also get stressed out by spending decisions and have trouble spending money, and therefore forego worthwhile experiences that could bring happiness.

Consider these tips:

Transfer money to a “fun” spending account monthly
Use a credit card for purchases that earns cash or rewards
Set a day each month to do something less frugal, such as dine out or attend a concert

‍Finding BALANCE Between Spender and Saver

‍The goal is not necessarily shifting spenders to savers or vice versa. But realistically, your goal should be a healthy balance that allows you to enjoy life while planning and preparing for the future you envision. Money and spending should not be pain points. Being mindful of your actions, emotions and intentions regarding money can help make for a more financially successful future.

If you are looking for a new financial plan, or would like a review of your current plan, please schedule an appointment on Bayntree’s online calendar by selecting the date and time that is most convenient for you! You can also always reach us by emailing info@bayntree.com.

Bayntree Wealth Advisors provides comprehensive financial planning and wealth management. The Bayntree team specializes in all aspects of financial health, including retirement planning, risk management, investment advice, tax strategies, estate planning and insurance.

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