saver or spender

7 Ways to See if You are a Saver or a Spender

Posted on 26th May 2015

We all want to know whether we are spenders or savers. It takes a special type of person to know what their spending personality is like and luckily for you, we have the following signals that will help you see whether you are a saver or a spender at heart.

#1 – You get urges to spend rent money on fun things

According to the Money Charity, the average private sector monthly rent towers at £705.79 per month. This is a huge amount of cash for many people in jobs where they don’t earn a lot. Even if you do earn quite a bit, £700+ is a fair chunk of change. When you get paid, if you feel like you could spend this £700 odd on other things such as going clothes shopping, this could be a sign that you are an overspender. Curb this automatically by allocating the money into your landlord’s pocket as soon as you get paid. This will stop you from the temptation of wanting to use the money for things which you shouldn’t.

Money Personality: Spender

#2 – If you try and save between 5%-10% of your monthly income

Saving is something that more of us are trying to do. According to a Spring 2014 survey from National Savings & Investments, Britons are now saving around 8% of their monthly income into savings that they can’t touch. This is definitely a change from previous times where austerity measures meant it was hard to get hands on money where you could even be in the position to save. Savings are critical for building a successful future and if you are in this threshold, you are setting yourself up for an easier future.

Money Personality: Saver

#3 – Buying generic supermarket products

Whenever you pop into Tesco’s or Sainsbury’s, you will be bombarded with all types of offers from brand names to generic supermarket products. If you are shopping on a budget and you know that you need to save money, it makes sense to buy generic supermarket products. This is because especially for things like aspirin & water, you can buy the generic options instead in a bid to save money.

Money Personality: Saver

#4 – Buying gifts for people

The world of gift-giving can be fraught with tensions because many people buy gifts for friends and family regardless of what their budget is. Many people do this because it is the ‘right’ thing to do depending on who is going to get the gift. Gift-giving should only be done within your budget. If you want to buy a friend an expensive gift but can’t afford it, only choose the present that fits perfectly into your budget without biting you later. Christmas is a time of year where many people trip up because of the gift-giving element. If you find yourself always buying gifts for people, cut back and only buy gifts that make sense in your spending plan.

Money Personality: Spender

#5 – Understanding the power of an emergency fund

Emergency funds are something that many of us are more aware of thanks to the growth of the personal finance industry online. If you want to keep your finance future secure, having an emergency fund of 3-6 months salary is a good idea. This means in case you lose your job or you fall ill, you are able to live on the same lifestyle as you did before without any financial repercussions. If you have managed to save an emergency fund, this is a good sign about your ability to see what could happen in the future.

Money Personality: Saver

#6 – Learning about the mortgage deposit world

Many of us want to get on the property ladder but we are afraid of how much it will cost us to get there. £27,000+ is now the average cost of a deposit on a home, according to the Money Charity. This is a steep increase from years before when you could get on the property ladder for less than £20,000. Property is something that is universal and that all of us want to own. How will you get on the property ladder? Make savings; find extra work, moving back home with Mum & Dad and starting a business are just some of the many ways that Brits are funding a mortgage deposit.

Money Personality: Spender & Saver since we all want to have a home of our own

#7 – Shopping for clothes frequently

If you are someone who loves going shopping, you can join the many Brits who have store cards and discount vouchers for clothes shopping. The British high street is full of jewels (or temptations) for our wallets. Many of us have reasons as to why we want to buy clothes – you might have a job interview or you are starting a new job, or you are going to a wedding. Whatever the case may be, ensure that you are shopping in your budget instead of overspending.

Money Personality: Spender

What to do if you are a spender?

If you are a born spender, you know that you like nice things and you love how they look. There is nothing wrong with being a spender as long as you are doing it within your budget. The problem is when you are overspending as opposed to staying in your budget. Anyone who is overspending should cut down on the shopping they are doing and be writing down their personal expenses every single day to get disciplined about cash. There are many free financial tools that you can use to budget your spending so that you can keep everything in check.

What to do if you are a saver?

Savers get good press often but there is no use being a saver but then dipping into your savings because you can’t make ends meet. Being a disciplined saver sometimes means saving little often as opposed to trying to save a lot and then failing because you are trying to save too quickly.

The key thing is to know what kind of spending personality you have and then create a rock-solid budget to fit into how you spend.

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