Are you a Saver or a Spender?
Head's up!
Ever wonder why some people find saving easier than others?
If you want to put serious thoughts into your finances, this is one of the first questions you should ask yourself.
"Am I spender or am I a SAVER?"
This is critical because both are the same. Yes, you read it right. Spending and saving are the same. They are both HABITS. We need to find out which habit has more gravity for us.
One way to test it is this. Imagine tomorrow is the end of the month - one of the two days of the month we all await for and love. Sweldo (salary)! Yup. Wages come in! --
What comes to mind first?
a. More money to put into my savings, investments and tithings? (Remember the 70-20-10? The 20 is the savings and investment a split.)
b. Hey look, it's a three-day sale! Just in time! (Then you pull out a folded piece paper out of your bag which contains a list from your window shopping from last week-- along with it a breakdown of the cost as well. Organized!)
If you chose letter a, then you're all set. All we need to do is just chart the course of your financial roadmap. Do your financial checkup, set your goals and deadlines, find the best solutions (as vehicles) suited for your needs and course correct along the way! Ergo, you are a natural. Good job!
But if you chose the latter, letter b. Congratulations! You're like many of us humans. We love spending. I, myself, love spending on food.
Don't worry, there is a solution to our challenge. We just have to do an extra step. A big step.
Remember, you are a spender. Which means you also are a very good saver. Weird right?
Okay, hear me out.
Let me paint another picture. Remember the time you wanted to upgrade to the latest gadget there was -- and it was out of your budget? What did you do?
I went on a diet! Normally, I would go out of the office and eat out for lunch. This time, I was prepared. I was very much motivated. I brought with me two (2) packets of crackers, and water in a jug. I did that for about two months. When my officemates asked me to go with them, I told them that I was getting near my goal. (Not the getting thin part, but the getting my new laptop part.)
Regardless of the motivation, I was motivated! I was able to save! Not to mention get thin in the process. Although at the time, I blew it all on a laptop.
The point of the story was, we spenders CAN be very good savers when we have the right motivation. The WHY is the important part. The key is we should know why we must save and know what we are saving for.
When we realize that we have a lot to prepare for, like buying our homes, paying for tuition, and preparing for retirement; these may be big ticket items that will motivate us to 'diet' on spending.
Another key take-away from this is that we can also use the spending habit we have to good use. Instead of trying so hard to save, think off it as another expense that we have to prepare to buy or pay for.
The next step is to plan our shopping list. Translation: financial planning and goal setting. Translate the financial plan into things to buy.
ie.
Retirement program = Buy VULs and consistently buys shares in your mutual funds.
Then implement your plan within the period of time given; the SALE period. If it's not within your budget, go for increasing your income and if need be, DIET.
If you get tired of dieting, increase your income and use more investment vehicles. When money starts working for you, the diet becomes a lot easier.
Best case scenario, when someone asks you what your super power is, you can tell them what Bruce Wayne said: "I'm rich!"
The only problem you'll be left with then is getting fat. Not a bad trade off if you ask me.
I didn't say we're aiming to be Batman right?
