Are You a Saver or a Spender?

The saver

Savers love bargain hunting and each expense is thought out. Every month, they set aside a little money in a savings account or an RRSP for their projects and retirement. Before heading to the grocery store, they go through the flyers to ensure they benefit from discounts and make a shopping list. At home, they check their bank statements and regularly renegotiate their Internet and cellphone packages and vehicle and home insurance policies.

In a nutshell, savers enjoy planning ahead. They’re careful with their finances and love getting value for their money.

The pros of being a saver

Savers manage their finances in a smart way. They have a high sense of financial responsibility and choose future security over instant gratification. While certain people think that savers are cheap, savers view their approach as a way of life. They’ve simply made a habit of controlling their spending and resisting impulse buying. Saving also allows them to avoid waste. Furthermore, thanks to their savings, they can look forward to the future with peace of mind.

The challenges of being a saver

Savers must simply ensure that their cautious approach doesn’t stop them from enjoying life. As long as you’re reasonable, small purchases now and then can make you happy. We all need to spoil ourselves from time to time!

The spender

Spenders are fuelled by impulse buying, which makes them feel good. And if they don’t have the money to purchase an item that they want immediately, it’s not a problem since they can opt for instalment payments. Buying now and paying later is incredibly tempting!

Spenders often live from paycheque to paycheque without ever managing to save. They use their credit card often and make only the minimum payments every month. As a result, their credit card balance never decreases. They don’t give any thought to their future and say, “I’ll cross that bridge when I come to it.”

The pros of being a spender

Spenders enjoy life to the fullest and live in the moment. And why not, since you only live once? Spenders enjoy life’s luxuries and are pleasure seekers above all.

The challenges of being a spender

Making yourself happy isn’t a bad thing as long as you don’t go over budget! When spenders make multiple impulse purchases, they can risk accumulating debt. Furthermore, if they don’t make a budget or plan for their future, they won’t be able to achieve their long-term objectives. They could also easily end up in a financial mess in the event of unforeseen expenses.

Reaching a financial balance

Whether you’re a grasshopper or an ant, you should ideally adopt certain sound financial habits to manage your money well.

• Create a budget. This will give you a good idea of how much you can spend. You can use our online tool to create yours.

• Set short-term and long-term savings goals. Planning will allow you to complete projects without getting into debt. Thanks to your savings, you can look forward to the future with peace of mind.
• Treat yourself to simple pleasures. Properly managing your finances doesn’t mean you have to deprive yourself. From time to time, you can treat yourself to a meal in a restaurant, a movie or a shirt that you’ve had your eye on for a while. You just have to be reasonable.