What Type of spender are you?
Posted on 29/05/2016
 

Some folks will have you believe that spending money is unhealthy. That may apply to chronic splurges, who blow their entire paychecks on unnecessary material things and are constantly in the red. But the fact of the matter is, money makes the world go round. And if you’re spending too much (or too little) of it, then you’re inhibiting that healthy flow.

So what kind of spender are you? See which category below describes you best.

THE SHOPAHOLIC. Do you shop regardless of need or utility? Do you shop merely to reverse a bad mood? Buying makes some people feel good about themselves, and they might justify a purchase by claiming it was on sale or still within their credit limit. Impulse shopping likely fills a gaping hole in their lives, so if you fit under this bracket, you’ve got to find an alternative activity that can give you similar feelings of self-worth without the pocket-sapping costs. Try a sport or volunteer work.

 

THE SHORT-SIGHTED CONSUMER. Do you make large, brash purchases? Do you fail to think about how you will cover the expense before buying the item? Such overconfident consumers rarely consider how they’ll pay tomorrow for what they buy today. They have little or no savings, they shy away from personal banking representatives, and they overestimate future earnings based on credit limits. Don’t fall into that trap. Live within your means, and build up an emergency fund.  Otherwise you might find yourself applying for a loan to cover your debt—double trouble!

 

THE STATUS SEEKER. Are you constantly comparing your material goods to those of your peers? Are you all about flaunting name-brand merchandise, even if it doesn’t suit your lifestyle? Status seekers are fanatic about owning the latest of whatever’s out there, and they’ll make sure everyone in their entourage knows about it, too. They’re happy to go into debt to enjoy a high standard of living, maxing out on their credit cards and paying exorbitantly high interest rates. If you subscribe to this label, rein in your profligacy, and stop comparing yourself to the Joneses—they don’t exist!

 

THE SMART SHOPPER. These level-headed folks can distinguish between want and need, and while they may indulge from time to time, they’re disciples of need-based shopping. They scan the market intelligently, comparing value and price on even small transactions. They are adamant about having a cushion for unforeseen expenses, hence both savings and checking accounts. And they rarely default on their credit cards. This is the sweet spot, where all shoppers should aspire to be!

 

Danielle Issa, Beirutista

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