Next up, the Spender: the life of the financial party and often the real-life party too. Everyone wants to be around them. Spenders are all about living in the moment and enjoying the fruits of their labor. After all, you can’t take it with you! Your strength is in celebrating life and not shying away from enjoying your hard-earned money. However, the pitfall here is the risk of financial instability. Often, overspending is triggered by emotions — be it stress, happiness, or even boredom (been there). Understanding these triggers can help with developing healthier spending habits. Try to adopt mindful spending, which involves pausing and thinking about each purchase. Ask yourself, “Do I really need this?” And then push those self-imposed questions further, “Yes, I want it, but do I want it more than an uncluttered house? Do I want it more than I want to stop lying awake at 3 a.m. worrying about my financial future? Do I want it more than I want to live an environmentally conscious life?” This practice can help in differentiating between wants and needs.
The key is balance — enjoy your present but don’t forget to give a nod to your future self.