Walking the Fine Line Between Being a Spender and a Saver

Are you a Spender or a Saver?

Are you a reformed spender? Or are you somewhere in the middle?

I used to be a spender. I have always worked hard, but I always had something I wanted to buy before I even had the money saved up. This was probably the case from my teens until my late 20’s to early 30’s. Things kind of settled down as I got a little bit older, but I never really though consciously about my money and spending habits until the last year or so.

Why was I a spender?

I think personally, I got emotional satisfaction, at least short-term, from buying things. As I got older, relationships with my wife and kids (as well as the lack of free time, I believe!) led me to spend less, and I realized I wasn’t missing anything.

So how can you change from a spender to a saver, if you want to change your spending habits?

Track all of you spending

This means ALL of it. From $0.50 for a coke, to your most expensive monthly payments (probably a mortgage or rent, for example). Write everything down, and have your spouse do the same if you are married. Figuring out where your money is going can help you identify what you spend money on, and can help you make adjustments to your spending habits-and hopefully make changes.

Get support from family or friends

Let people know what you are doing. Again, if you are married, make sure your spouse is involved. It is much easier to change your spending habits if those around you know what you are doing. You don’t have to be ashamed that you are trying to spend less money, so don’t be afraid to tell people you are trying to spend less and save money.

Change your daily routine

Regular spending can often be tied to your daily routine. A stop off at the coffee shop on the way to work in the morning, or a stop at the mall or bookstore on the way home can often lead to regular spending.

Find alternatives for your time that don’t cost money

As I mentioned above, after I got married and had children, I had less time to actually spend money, and even to think about spending money. You don’t have to start a family, of course, to find things to fill up your free time though. There are tons of things you can do to keep yourself busy- find a new hobby (the cheaper the better!), spend more time with friends, even volunteer, or look for other activities that can fill your free time.

Stop hanging around with friends who spend

You don’t have to ditch your friends, but if you have people you go to lunch with every day, or a shopping buddy, don’t do the same activities (the ones that involve spending money) with them. Offer cheaper activities as an alternative when spending time together.

photo credit: Foxtongue