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What Kind of Spender are You? Top Money Saving Tips

date October 5, 2021 time 6 min read 317 views

If you are asking yourself what kind of spender you are, or how to save money if you are a spender, or if you need to find a place to keep your savings and still earn a good interest, then do not skip this post.

We often stress the importance of financial literacy, such as understanding how money works and having enough information to make financial decisions. However, when it comes to building a financial base, most people overlook their psychology of money

Spending money is easier than ever before, and it can be difficult to keep track.
Spending money is easier than ever before, and it can be difficult to keep track. (Source: Pixabay)

Each of us has our own beliefs and feelings about money, shaped by our personal life experiences.

Acknowledging what kind of spender you are will help you in lots of ways in improving how to save money if you are a spender like saving unnecessary purchases and creating a budget, smart investments, as well as guaranteed retirement savings.

Let’s figure out what kind of spender you are by looking at the four most common types listed below.

What kind of spender are you?

1. Thrifty Saver

This type of person tends to save money anytime, anywhere. They are good money earners to accumulate in safe bank accounts, not intending to take risks with investments.

They think money should be saved rather than spent on wasteful things, usually thinking twice before buying something. Instead of going for expensive products, a thrifty person will look for the best value ones. Facing an item they love, they will make all sorts of excuses and decide “It is not necessary to buy”.

2. Generous Spender

Contrary to the thrifty style, Generous Spenders ​are likely to spend money without thinking. They represent people with extroverted personalities, who like to work on feelings, without thorough calculation.

Even though they have bought countless similar things, they still can’t help buying more if they get into it. With a “swing money out the window” personality, they are likely to be at risk of facing debts or regularly running out of money before receiving their next month’s salary. Enjoyment is good, but unplanned spending will get you in big trouble.

3. Spontaneous Spender

Spontaneous Spenders could be deal seekers if they use the excuse “it’s on sale” to buy something that they don’t really need. This is called FOMO (fear of missing out), which means you tend to be afraid of regret of missing a good deal. 

A bit of spontaneity can be good but too much can leave you with an empty wallet!
A bit of spontaneity can be good but too much can leave you with an empty wallet! (Source: Pixabay)

The fact that an item is cheaper than it could be is often an excellent excuse for buying it — at least according to our irrational brains. However, it’s a bad habit that can empty your savings account if you get an email alert about your favorite store having a sale and use that to justify making a purchase. No matter how good the deal is, small purchases can eventually add up to one big shortfall in your savings plan.

4. Moderate Saver

These people are rarely interested in luxuries like new or trendy cars, phones and they are satisfied with what they have. They always try to get a good bargain when buying something they need. Sometimes they reward themselves to make life more enjoyable. They are also the ones who can retire early with their savings.

With a moderate savings strategy, you can give yourself a chance to pursue your dreams.
With a moderate savings strategy, you can give yourself a chance to pursue your dreams. (Source: Pixabay)

They have reasonable savings and spending plans and consider low-risk investing to make a profit and compound interest investment. They are hard-working to earn money and are looking forward to a life of financial independence in the future. 

Besides these 4 typical types of spenders mentioned above, have you ever felt like there’s a little voice deep inside screaming at you to stop spending money or to sell that stock at a loss when its value is declining? One possible explanation for that could be your enneagram core motivations. If you’re curious about that, take time to find it out.

We hope that you could find out what kind of spender you are with the purpose to head to set up a suitable saving plan and secure your financial future. So let’s review some simple and helpful tips to save and earn more money with us.

Here are 5 tips to save money

Saving money won’t come easily, but it’s not impossible. Once you figure out “What kind of spender are you”, there’s always a path for you to save money and achieve your financial freedom.

1. Use Debit Cards

Credit cards are always advertised as a financial solution, however, in reality, this is a significant financial burden and a problem for many people. A scientific study has proven that using a credit card makes you shop more impulsively because the way you pay with a credit card can trick your brain. Meanwhile, spending with cash will bring about a clear sense of loss.

Debit cards are far better bets for retaining control over your spending.
Debit cards are far better bets for retaining control over your spending. (Source: Pixabay)

Credit cards bring many conveniences until you have to face bank debt every month. Another tip is that you can use a debit card instead of a credit card because you can still use the card in transactions (if you care about its convenience) but only within your ability to pay. At least, you won’t have to worry about unnecessary debts.

2. Go shopping alone

The fact that you will probably spend more money when going shopping with friends because of visiting many places, receiving many cheers. Moreover, the common mentality of many people is that they want to be equal to their friends, so they will often spend more money.

Spending time with your friends is an awesome way to relax and have a laugh. So instead of shopping, having fun at a park or cafe can help you spend less money.

3. Follow the 24-hour rule

We usually shop emotionally, not a necessity. To cut costs and save more money, you should follow the 24-hour rule. Think about it before making a purchase, you may eventually realize whether you need that item or not. Once you apply this rule, you’ll be surprised at how much money you can save.

4. The 50-30-20 Rule

The first step to start saving is to determine how much you spend each month. Then track all your expenses, from buying coffee, newspapers, food to rent, electricity, water… Once you have the data, let’s categorize each item, such as gas, groceries, debt payments.

Next, try to flexibly combine with the 50-30-20 Rule of Sallie L. Krawcheck, which includes setting aside 50% of your earnings for essential needs (electricity, water, rent, groceries, food, vehicles, etc.), 30% for the things you “want” (things that make you happy like traveling, watching movies, etc.), and 20% for your future (savings, investments or pay).

5. Invest to save more with MyConstant

How to save money if you are a spender? Investing with our peer to peer lending for bad credit platform is such an interesting idea. If you’re just looking for somewhere safe to store your savings and earn a little interest, you can deposit money online with us and earn 4% APY. Plus, it’s compounded and paid every second, so you’ll get the satisfaction of seeing your money grow continuously. 

Or, if you’re prepared to take on some risk, you can try lending money online to borrowers and earn up to 7% APR. This means you’ll be lending directly to people and businesses (who have put down collateral to make your investment safer).

When you invest with MyConstant, you’ll also get:

  • 24/7 customer service.
  • Flexible terms.
  • No fees.
  • Withdrawals at any time.
  • Store and borrow against over 70+ different cryptocurrencies such as qtum coin, BNB, bitcoin, etc.
  • $10 minimum deposit.

Why not create your free account today and find out for yourself if we’re right for you?

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George Schooling

George Schooling

Earn up to 15% APY on your idle stablecoins (USDC, USDT)

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