Are you a spender or are you a saver?
You may have habits of both the spender and the saver, but you have a primary personality.
I am a spender and for the longest time beat myself up about this. I should know better and I should be better. But, bottom line, I am a spender.
I spend money by being generous to others, spending money for gifts for others when I do not have the extra money, I spend money for the experience of the moment; but at the same time, I am financially organized. My checkbook is balanced, and my bills are paid on time.
Obviously, holding onto money is not of high importance to me. Yet, I know the importance of budgeting, saving for retirement, and saving for a rainy day, I am just not disciplined!
If you are a saver, you are probably much more patient than I am, and you are very responsible. You are self-disciplined and do not shop impulsively. Your goal is to avoid debt and to save as much money as possible and giving away money is hard for you, impulsive spending is even harder.
So can the spender and saver improve in their money skills, absolutely.
First understand and know what your personality regarding money is.
For the spender, remove or avoid impulsive spending opportunities – do not tempt yourself by putting yourself in those situations. For example, I love Tuesday Morning stores and I can always find something I want. No matter how much I talk to myself prior to walking into the store, I still find that something extra – once, that extra was 15 birthday cards.
As a spender, I need to put myself on a budget. Oh my goodness, budgeting is hard. I need to start by tracking money coming in, and money going out. I have made attempts at budgeting and as a result, I have discontinued my DirectTV subscription, I have limited my cell phone data plan, and I have cancelled my wine club membership. Obviously, a budget, tracking my expenses does make a difference, I just need to continue each month. I need my budget to be a visual, something that I see every day. I cannot avoid it, if I see it.
If you are a saver, you have so many good money habits – budgeting, setting goals, no debt, no impulse shopping, and being self-disciplined. However, some spenders feel they are just not doing enough, they find it extremely hard to be generous, and are often viewed as penny-pinchers.
Just like the spender, you must recognize your money personality.
Being generous is okay, just put giving into your budget. Sometimes that giving is calling someone on their birthday, a handwritten note to say thank you or to congratulate someone upon an accomplishment and give your time to others by volunteering. Have a to-do list and see your successes.