When I first started asking this question “What type spender are you” I just started asking random people what type of spender are you? What would best describe how they shop? The first response I received was; Which is worse? My reply was, a compulsive spender-
Before I go any further let me go on to define the definitions of these types of spenders:
Compulsive are those who are “shop alcoholics”. Consistent shoppers, never really nothing to buy, just goes to the store and buys something out of sheer boredom. Most compulsive shoppers regret almost every purchase they make, sometimes they spend their very last, knowing they actually needed the money for real life necessities like household bills, gas for their car, or important items- Most compulsive spenders spend to cover a deeper issue of self-confidence, loneliness, subsided relationship tension or self-esteem issue or sheer boredom.
Cautious Spenders, they make sure all the household bills are paid before any shopping is done and are almost always worrisome of a financial disaster happening, so they continue to reserve funds. They go to the store with a grocery list and if it’s not on the list it needs to wait until the next go round or paycheck. For the most part all bills are paid on the due date; if not before, to avoid late fees and out of fear of disconnection or in any laps in service and some will over pay just to reserve for next month.
Frugal is what you would call the “cheap shopper”. Every cut corner that can be taken will be done; Frugal shoppers will place their selves in unique living situations to make sure they can see that they’re savings are growing. They will save by any means, from buying the cheapest quality product or even going without certain necessities.
So I’m sure you’re reading these as though all of these are the worse kinds of spending ever, but the overall goal is to save and be COMFORTABLE… Being compulsive places you in higher debt category most compulsive spenders are in, and can’t get out until they figure out why they are shopping compulsively. And the only remedy to a compulsive shopper is to remove all their money -make it hard to get, and even harder to spend –Close all accounts if their excessively compulsive, credit cards need to be frozen or given to a person you trust until they figure the situation out -A savings account with no ATM card, nothing to make spending easier. After a few drives back and forth to your bank, one may realize what they’re doing and halts or at least slows the process. Go to the store with a list (it takes only minutes to create a shopping list) and literally stand in the store and check off each box. If it’s not on the list, put it back and don’t purchase it. Don’t go to the grocery store hungry also, you’ll use all compulsive tendencies because everything in the store is going to be something you want-be sure to just use your list. Pick a shopping day, only put a certain amount of money aside for that shopping day, not a penny more, not a penny less. Once it’s gone, the day is over for spending despite what you need.
Cautious shoppers have a way of saving that’s very unique. They’re so worried about making a wrong financial move, they save while spending- Out the three types of spenders, if I had to pick the better of the three I would go for a “Cautious” spender, as they reserve funds for a rainy day, they can save, they almost never over spend and wouldn’t mind stopping the clerk while checking out and saying “I’m sorry I don’t need that, can you please put this back, I’m on a strict budget” . Bills are paid in advance, credits cards are at a normal balance to limit and all house hold necessities that are purchased are a necessity and nothing more.
It’s always sad to get a bank statement back and see fruits of your labor not paying off. Most of the issues of not being able of save are because our bills subside our income or we just don’t know how to save despite how much we make. Remember the term “A penny saved is a penny earned”- well one would be surprised how much you can save by changing your spending and shopping habits. Start buying in bulk, it avoids the option of going to the store as frequent. Stores like Sam’s Club, Costco and other bulk retailers really payoff. Save a dollar a paycheck….yes a dollar- I’m sure some are saying a dollar can’t get anything – you’re right, an it’s not as tempting to spend either, but $1x 30 x 12= 360, so I’m sure you can see, a dollar adds up pretty quickly. If you can do more, do more, but only small amounts so you’re not tempted to go back to the amount because you need it for something. Watch it grow and no matter how tempted you are, don’t touch it after it gets to 500.00. Remove it and place it into a CD account. Your bank or credit union can assist with opening this account, but it won’t allow you to easily withdraw the money which is what some of us need.
Again, what type of spender are you? What type of spender do you want to be? I’m sure you can now change the type of spender you are to be a little more cautious and save a little more.
Are you drowning in a debt and just can’t seem to find a way out. Why? No matter what you do, you’re still living paycheck to paycheck. Stay tuned for my next article –“Breaking Doubts of Being Debt Free, You Can Do It”. I have helped people with diagnosed spending disorders, so I’m positive I can help you- if you need help with a spending problem…
Visit me at www.rjcreditassociates.biz
Email me: rjwhite@rjcreditassociates.biz (everyone remains anonymous)
Got Financial questions? Email me and I’ll be sure to answer them in my next post!
Q & A for spender’s topic:
Q: RJ, I have been saving for years and I have a decent amount saved, but I really don’t trust banks with my money. I don’t want to keep hiding my money, because in case of a disaster I would lose everything. I’m completely at a lost, but I don’t trust banks either. What do I do…..?
A: I suggest either turn the money into bonds and place them in a safe deposit box at a bank where you have anytime access instead of using the bank system (Deposit, withdrawals, debit card, etc.). It’s just a key and signature to your items – but this world is technology based so I suggest maybe try to scout for a good credit union you can trust. Start small and see how that relationship works. Keeping cash value is always great, but safety and security is key. If you’re worried about spending it, then investigate in healthy 401K programs.
Q: How do I stop my significant other from spending? Every time I look at the bills they're just spending and spending an I really want to purchase a house in a year or so, but I’m afraid because the spending just doesn’t stop.
A. It’s time for a family meeting. Some family goals need to be put in place and during the meeting, it needs to be cut and dry- We're looking to buy a home and if “we” continue to spend this way I’m afraid we won’t be able to afford the house or anything else. We need to cut back our spending. That should solve the issue if each of you are on the same page of family growth-
No comments:
Post a Comment