2-3 min read (or brushing your teeth)
Did you know there are different money personalities? Ever wondered what yours is and what it means for your bank account? Over the next few weeks, we’re rolling out a series of Slice articles on different money personas to help you identify your type and learn more about what the pros and cons of each personality are. This week we’re diving into the Big Spender persona.
The Big Spender
The Big Spender is all about living in the moment, making purchases for personal satisfaction and is a firm believer in ‘treat yo’self.’
Are you a Big Spender?
If your purchases are often guided by gut and you find yourself looking out for the latest craze, then you might be a Big Spender. Big Spenders often find personal satisfaction in purchasing the latest gadgets and gifting expensive items, but don’t necessarily blow all their cash. When they invest, they tend to choose riskier funds.
What the Big Spender does right
Big Spenders remind you that life is short and living in the moment is key. They seek freedom, which is something most of us can aspire to. As partners, they’re generous, often treating those in their lives. This personality type is great at spending money on things that spark joy, which other types of spenders like the Money Hoarder* struggles with.
What Big Spenders aren’t so great at
Big Spenders aren’t the best at planning their financial future. The price of living in the moment runs steep if you don’t plan for what comes next. Since Big Spenders are more likely to invest in riskier funds, their investments don’t do as well as other good and steady investments. Since big purchases are what drives them, their savings pocket isn’t as deep as it could be. Planning for old age might seem like a distant goal for the Big Spender, so they often start saving for retirement too late. When expensive emergencies occur, they may also find themselves coming up empty.
Being a smart Big Spender isn’t that difficult
Limiting your spending is the quickest way of moving towards a brighter financial future if you consider yourself a Big Spender. A monthly budget is a great way to ensure your bucks go to the important parts of your life.
Choose a steady and reliable fund to invest in. Don’t chase the big guns with the majority of your savings – rather choose funds that will serve you well in 10+ years. But don’t lose that adventurous side! Rather, use it to find some investments you believe in for the rest of your savings.
Delayed gratification is the name of the game – whenever you feel the impulse to buy a luxury item, write it down and give it a few days. If you still want it after the cool-off period, go for it!
Use 22seven or keep an expense diary to help you keep track of purchases. Evaluate them regularly so you can see if they added real value to your life. Weekly allowances will help you limit spending, and avoiding triggers like online shopping websites and malls will go a long way too.
Seeking long term value is an important consideration with any purchase. Don’t let the rush of buying a new watch overpower the ability to grow your money.
*Read the next Slice in this series to learn more about the Money Hoarder persona.