One of the most intriguing parts of finance is how people spend money and this is quite interesting because on a daily basis, we get to see or hear about the short and long term effects of spending from how a person just acquired something very expensive and how much they spent to how another person goes bankrupt and now owes debts. There are several types of spending habits and these habits says something about our personality and how we handle money. For the purpose of this post, I'll be dividing the spending habits into 3; The Big Spenders, The Savers and The Investors.
**The Big Spenders: **
These folks don't care much about the price tag and purchase whatever they want. They may not be richest in the room, but have a spending habit one could wonder of they are infact the richest in the room. They are go-getters, risk takers and do not care about the financial implication of their actions. They spend on themselves and hold strongly the opinion that you only live once so why not live life to the fullest.
The Savers:
They're totally opposite of the big spenders. They pay attention to details, buy the things they need, eat cooked and healthy instead of going to expensive restaurants, they live a minimalist lifestyle and are always looking for opportunities to save. They don't get moved by flashy things and can't be easily pressured into getting expensive things. They are also barely close friends with big spenders because their spending habits are so different and they see the big spenders as wasteful. Some people may regard the savers as being stingy because they don't spend money as much but the reality is that they are really just watchful about how they spend and what they spend on.
The Investors:
They are always looking out for opportuinities to invest and grow their wealth and are almost very busy searching for ways to go higher up the ladder. They pay attention to details and love to read. They are mostly the richest in the room but may not look like it because they really don't fancy spending lavishly but can be pressured into doing so because of society's standards. They love taking calculated risks and are sort of a mix of big spenders and savers.
These spending habits may also a spectrum and some people may have different degrees of each but in most cases its either you're one of the three. What's your spending habit like?
We are small time investors. We are not good with saving so we invest any chance we get. Nice post.
I believe that to become an investor, it is necessary to save.
Many people spend everything they have for income because they assure that 100% is not enough for their expenses, and unless they program their way of living/spending and notice what they are really spending the money on, they will never have anything to save and invest in. a good chance.
When I started saving, I constantly told myself: "If 100% of my income is not enough... then 90% will be good enough to live with the same deficiencies".
Actually, when I immigrated to Chile, I started saving 3%; Today, 5 years later, I only live on 40 or 50% of my income, since I learned to differentiate between mandatory expenses and those that are unnecessary or derisory.
Good post, brother.