Are you a saver or a spender? Knowing your own habits is a great way to understand how you manage debt and personal finances- the good and the bad. If you aren’t sure of yourself, take the September Challenge: Are You a Saver or Spender?
Self-Evaluation: Saver or Spender Quiz
The first step is to take a look at how you handle money and consumer debt. Read through the questions below to begin identifying your own habits. Remember, this is a general look at savers and spenders; everyone is unique and may contain qualities of both.
- Do you have money available in your account after your bills are paid?
- Do you have a larger, long-term plan for your finances?
- Are you afraid to spend money?
- Do you create and stick to a budget?
- Are your bills paid on time each month?
- Is most of your money spent on necessities?
- Do you have savings and/or a retirement account?
If you answered yes to most of these questions, that means you are a saver.
Pros & Cons of a Saver
Typically, a saver is a planner. They will have money saved, a budget, pay their bills early or on time and spend sparingly. While this sounds like the person you want to be, there can be drawbacks to being a saver. There can be anxiety around finances, less risks taken when investing and thus potentially less reward. By not investing money or using it to gain other things, such as more education or other appropriate life upgrades, opportunities can be lost.
Pros & Cons of a Spender
The spender is less detailed. They will see their money come and go more quickly than a saver. They might also have less or no long-term financial goals and credit card debt. This riskier profile is not all bad news. Spenders see value in the moment and take risks when investing.
Whether you identify with one profile or the other, there are strengths and weaknesses to both savers and spenders. Either person may fall into debt. The more you know about yourself, the better you will know how to manage and eliminate debt. Take the September Challenge and figure out your own strengths and weaknesses when it comes to personal finances!
To speak to a credit counselor today about budgeting and managing your finances, call 800-769-3571.