At Seren Wealth Advisors, we provide a solid foundation to develop a personalized plan and investment portfolio to meet your financial goals. In order to meet your goals, identifying the type of spender you are can be very helpful. Your spending type is not determined by how much money you earn or spend. Instead, it is determined by how comfortable or uncomfortable you feel when you spend. Life experiences and social relationships can create fluctuations in spending and saving patterns. As we take a closer look at various spending types and the psychology associated with each, opportunities for growth emerge.
1. The Amasser
The Amasser experiences feelings of discomfort when spending whether on wants or needs. Because of this, they tend to be heavy planners with self-control. They wonder: “Do I really need to buy this?”; “Will I not be able to afford something else later?”; “Is spending supposed to be this stressful?”.
Spending money creates feelings of vulnerability and, therefore,the Amasser will overthink spending decisions to ensure that undergoing these feelings of vulnerability are worthwhile. Forthe Amasser, finding the sustained value of self-care is the ultimate goal.
2. The Spender
The Spenderis spontaneous and lives in the present. This mindset allows them to use their money to invest in obtaining happiness and shared experiences. Because of their focus on the present,the Spendermay overspend and yet experience frustration resulting from an inability to acquire everything at once.
Buying helps connect us to others and fulfills our desire to feel included. This need for inclusion is especially important tothe Spender.Forthe Spender, setting spending priorities is the ultimate goal.
3. The Hoarder
The Hoarder is similar tothe Amasser in their relationship to money. However, they will do anything to avoid spending money. Whilethe Amasser is frugal,the Hoarder is willing to suffer in order to avoid spending and will put extreme effort into saving, reusing and repurposing in order to save money. This often results in above average wealth accumulation with a below average feeling of financial stability and well-being.
Because ofthe Stasher’sself-selected identity as the “ultimate saver”, they often bypass purchases and experiences that may bring fulfillment and joy. Forthe Hoarder, achieving balance is the ultimate goal.
4. The Avoider
The Avoider is intentionally oblivious to their financial condition. Their relationship with money is driven by either a lack of time or the fear of financial clarity.The Avoider may not be aware of pending financial distress; however, this lack of awareness may cause both immediate and long-term crisis.
The Avoider may acknowledge feelings of fear, anxiety, confusion and denial, all of which may cause them to avoid taking financial responsibility. Forthe Avoider,confronting their financial situation and creating a plan is the ultimate goal.
5. The Money Monk
The Money Monksees money as a corrupting force. Because they believe money is corrosive, the thought of obtaining wealth creates anxiety. TheMoney Monk’sbiggest priority is to maintain their ideals and values. If they were to inherit a large sum of money, they are likely to donate it or invest it in socially responsible investments aligned with their values.
Much like a religious monk, theMoney Monkviews a life of simplicity as the key to peace and happiness. Forthe Money Monk,realizing money is not inherently bad and that wealth can be used for good is the ultimate goal.
There is complexity with every type of spender. The good news is that with effort, accountability and support, change is possible. The result is a financially bright future. Let us help you obtain that future!