Do you spend like there’s no tomorrow? Or do you hoard more money than you could possibly need? Or are you somewhere in the middle? Find out which type of spender you are and what to look out for.
We’ve all got quirks and tendencies when it comes to spending our money. On today’s episode of The Financial Answer, we’ll discuss the four types of spenders. The question is, which kind of spender are you?
When you have an extra good day, do you immediately go out to dinner to celebrate? And then when you have a bad day, go out shopping to cheer yourself up? If so, you might be the emotional spender. Be careful! As enjoyable as it may seem, this can add up significantly when making your decisions based largely on emotions.
Is YOLO your life motto? Are you constantly in competition with friends over getting the best and brightest new toy or technology? You might be type #2 then. Watch out though, because this can cause you to get into a lot of debt if you don’t pace yourself. Remember to think not only about the toys of today, but also plan for the future.
Are you driving an old reliable car by choice? Do you like making plans and researching before you spend? You might be the savvy spender. A lot of times, type #3 has a good balance with their finances. With the right plan, you can achieve your financial goals.
Finally, are you a bit stingy when it comes to your money? Sometimes considered the most miserable of the types, the miser is type #4. While it’s good to save, don’t hoard your money.
So, what happens when one person in a couple is one type and the other person is a completely different type? How do you compromise together to reach your goals?
Regardless of your spending type, a financial advisor can coach you through the hurdles that may come. Listen to the full episode to hear Nathan discuss each type or click on the timestamps below to hear about the type you most resonate with.
[0:55] – What kind of spender are you?
[1:20] – Type #1 – The emotional spender.
[3:35] – This can translate into emotional investing, which may cause a shift in goals or decisions.
[5:31] – Type #2 – YOLO! You only live once, so let’s spend it all while I’m here.
[5:57] – This type of spending can get you into a lot of debt.
[7:37] – Type #3 – The savvy spender.
[10:38] – Type #4 – The miser.
[11:10] – This type feels like they will never have enough and cut corner to hoard it.
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