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Are You a Saver or a Spender?

It seems there are really only two types of people in the world in regard to money: savers and spenders. I'm sure some would argue that there is a middle ground but ultimately it boils down to whether or not you tend to save for the unknown or spend like the money is literally burning a hole in your pocket. Which one are you?

When it comes to budgeting, the savers of the world are going to do a better job. They're going to have an emergency fund and plan for those irregular expenses such as oil changes, taxes, and even holiday shopping. I am one of those people. I set aside money in an envelope every month for Christmas. When I'm due for an oil change or a new set of tires on my truck, I have the money saved up in advance. I pay my vehicle insurance every 6 months by setting aside a portion of it every time I get paid. But what happens if you're not a saver? What if you're more of a spender?

The spenders of the world are fun. They go out to eat on a whim, buy a cute shirt when they see it, and usually live in the moment without too much worry about the future. Spenders tend to focus on what money can buy them right now.

The savers, like me, are more cautious. They try to look at the big picture and think about the future so they can plan for it. Budgets are made with categories for spending and purchases are given careful consideration. Savers are usually natural planners and are typically pretty good at managing their money.

One thing to point out here is that there's nothing wrong with being a spender and there's nothing wrong with being a saver. Most people naturally tend to be one or the other, and that's just who we are as humans. The important thing to remember is that both spenders and savers should try to align how they use their money with their financial goals. Making smart decisions with your money is key here. Having an emergency fund and paying off your debt should be the highest priority. When those two things are taken care of, it's time to start making decisions about where the money goes. Spenders may want a new car or to go on a well-deserved vacation while savers will probably want to save for a house or retirement. Being smart with your money means you know which side you sit on and find what works for you. If you find that spending is stretching you too thin or that saving is too boring, try to adjust your budget to find a more happy medium.

While the savers of the world will probably be better at making and sticking to a budget, that doesn't mean that the spenders can't make a budget, too. Making spending categories that fit your lifestyle and help you achieve your goals is the best way to make your money work for you. Look for an article coming soon on how you can track your spending to see where all of your hard-earned money goes each month.


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