Saver or spender?

It’s heading towards the end of the year and many of us will soon receive our Christmas bonus.

It’s time for beach holidays and Christmas gifts. School fees and clothes for 2017 still feel many weeks away and are next year’s problems.

Guilt-inducing financial planning

Soon a guilt-inducing financial planning article is bound to catch your eye. You will be told how you should save your bonus for school fees and invest the rest for retirement.

But what’s the fun in that?

If you are a saver, you will feel satisfied when you look at your growing account balance and displeasure when you need to spend money. However, if you are a spender (like many of us) and you look at life as something to enjoy, you may buy on impulse and worry about your growing debt later.

Extreme savers may have regrets later in life, but it’s also important to put something away for a rainy day.

Spenders can use the following tactics to help them cut back:

1. Limit your credit card usage and try to use it only for emergencies. Forking out cash will help you realise how much you are actually spending.
2. Withdraw cash from your bank account, so that you can see the dwindling balance.
3. Pay for everything as it comes and you will start to understand how your money “just gets away” from you.
4. Set personal savings goals and tell your friends and family, so that they can hold you accountable.
5. Reward yourself when you reach your goals, but only by spending a responsible percentage of what you’ve saved.
6. Ask yourself before every purchase whether you truly need the item. Know the difference between needs and wants.
7. Consider the future, even if this makes you uncomfortable. Think about how much money you will need to retire and how you will pay for your child’s college education.


If you are a saver, you will sometimes go without things you really need, because money in the bank is more satisfying to you than anything you could ever buy. You rarely have a credit card balance and you astonish others with the savings you’ve managed to build up over the years, even though you just earn an average salary.

But are you missing out in life through your frugality?

Tips for savers to loosen the purse strings:

1.When it is time to do something pleasurable like go on a vacation, distance yourself from the stress of spending by paying with a credit card. You’ve got the cash to cover it, so now you can take your mind off the expense and relax.

2.Treat your purchases as a reward for something you’ve done well, so that they take on more value in your mind.

3. Tell yourself that you also deserve pleasure.  Think about your future and if you really want to have regrets one day about not doing things, simply because you would not spend any money on enjoyment?

You only live once, but sufficient cash will ensure that it’s a good life. So, spend some of that Christmas bonus, but also put some away for next year and the years to come.