If you are well aware of the money you have in your pocket all the time, know how much you spend every day and the things you spend on, buy clothes only when necessary, and eat out less than three times a week, you’re probably in the saver category.

On the contrary, there’s no doubt that you’re a spender if you:

• Consistently eat in your favorite cafe, perhaps, four times a week
• Can’t live without buying the latest Jordans
• Forgot where you spent the $50 stashed in your secret pocket on Friday night
• Have credit card bills piling up

The majority of us are somewhere in between. But undeniably, many people go beyond their limits.

Assessing Your Financial Character

When it comes to your financial character, we are not assuming and making any judgment. Being a spender or a saver is a huge part of who you are. Your financial character is more like about you being an outgoing or reserved person. Or whether you like Chinese food or not. Financial personality is all about you.

Being a spender or a saver isn’t harmful or good in general, but both can cause trouble without proper management. It’s easy to identify which characteristics you hold as your habits can show if you’re a spender or a saver.

If you are a saver, then that’s great. However, it doesn’t necessarily mean that you’re better than anyone else. Although being a saver is a good start to managing your finances properly. You most likely have a good record in most credit-scoring companies.

If you are a spender, don’t fret yet. Your priorities are probably different from most people’s, and that’s okay. Maybe you like to live your life to the fullest and experience beautiful things while you can. However, you might encounter problems if you let your financial character take over your life.

All About Savers

Suppose you are pretty convinced that you’re a saver: Congratulations! Being a saver means having a better chance of managing your finances. The next thing to do is evaluate how you save money. Are you saving the right amount? Are you saving too much? Could you save more? These are the questions to ask yourself.

There is nothing wrong with saving money, but not saving wisely is such a big waste. For instance, some older people who tend to die alone in their classic apartments without too much luxury have money stashed somewhere. Their goal is to save as much as they can, to the point that they let go of comfort and necessities, so they have something to leave to their families.

If we’re being honest, what they did makes no sense. You work to earn money, save, and have a comfortable life simultaneously. Make sure to save but don’t ever compromise living comfortably.

Life is short and not guaranteed. And whether we like it or not, not everyone will make it to retirement years. It would be unfair if you worked hard and did not enjoy the fruit of your labor. It’s all about balance. Save for your future but don’t deprive yourself of things that will make you happy.

Understanding Spenders

Being a spender is fun, but it can cause immeasurable damages to your finances if you don’t manage it correctly. You’re probably one of the many people who prefer to spend their money instead of saving it, and as mentioned, we’re not here to judge.

Growing up, most of us are bombarded with several advertisements to go and keep spending money- get a car, buy a beer, travel, get a new pair of jeans, and so on. Spending your money is a choice you make for yourself. If it makes you happy, do it.

But spending too much can put you in a financial crisis. Remember that while you’re spending and not saving, you’re putting yourself in situations that are hard to escape from. Enjoy your life but don’t forget to deposit in your savings account, have an emergency fund. Living life to the fullest is more meaningful if you are prepared for unforeseen events.

In addition, make sure to invest your money. So even though you keep spending, the money you invested will keep on earning. Investing is a good way to ensure that you have more income, allowing you to have spare money for your expenses.

We all have different preferences in life. Your choices are the ones that make you happy. If spending money makes you feel fulfilled, that’s part of your financial character. And if saving is your top priority, that shows how you live your life. It’s all about making wise decisions to make the most of our lives while keeping our financial freedom.