When you hear about individuals and their money habits, you generally find they fall into one category or the other. They’re either spoken of as a spender or a saver. They’ll either spend money left right and center, never really saving at all, or they’ll save lots at every opportunity and find it hard to spend. There are pros and cons to each of these types and some people go more to extremes than others.
However, is it possible to be both? Could you be someone who isn’t afraid of spending money but is also capable of saving money regularly and when required?
History in the making
There is evidence to suggest that our money habits can be influenced by our parents as much as anything else. If we see our parents being very frugal with money, we might grow up in the same way. Alternatively we might choose to rebel and spend money when we get some of our own. Another situation might see us brought up by parents who spend money and don’t save any. Here we might do the same, or we might see them get into financial trouble and decide we don’t want the same thing to happen to us.
How does your history factor into your own financial habits? Can you see a pattern? Do you fall into the spending or saving category or both?
Could you spend sensibly as well as saving sensibly?
The ideal situation is to find a balance in your money habits. Saving money is a great thing to do, but it’s not so great if your car breaks down and you need another one, but you don’t want to spend the money to get it. Similarly if you need to save some cash for a vacation next year but you carry on spending everything you earn on a daily basis, this isn’t so good either.
It certainly makes sense to look into the pros and cons of each side of the coin, so you can figure out how best to save money as well as spending it in the right ways. It is easy to waste money on lots of different things, which is why it is often recommended that you keep a record of how you spend money and where and when. This will enable you to sort out your financial habits and to see where you can save more efficiently as well as where and how you should spend it.
Most of us will typically fall more into one group than the other. It shouldn’t be too difficult to figure out which group you fall into. Once you know, you can take lessons from how the other half lives, so to speak. Read up about the methods they use so you can work out how to do a bit of both and be a spender as well as a saver. It is possible to do both – you just have to strike the right balance.