Other Retirement Facts:
Today’s Hack
We all have personality traits, so when it comes to money, we have different spending traits. On today’s episode of the podcast, we’ll discuss four different types of spenders and their characteristics. Which one do you most closely resemble? What about your spouse?
The emotional spender makes decisions based on how they are feeling. Everyone has that tendency to a certain degree, but some more than others. For example, right now a lot of emotional spenders are likely trying to travel after not being able to for so long. Having a spouse or advisor who helps keep this spending in check can provide a nice balance and keep you closer to your budget.
The YOLO (you only live once) spender. A lot of people in early retirement can go wild wanting to celebrate retirement. Make sure you run the math in your plan. A lot of spending early in your plan, it can have a detrimental effect long-term. Are you longing for a nice RV or a fancy new car? If you’re making a big decision, call your advisor to find out if it’s a good idea.
A savvy spender has more of a balanced approach to spending. It’s important to understand the pros and cons of something. But when spending together as a couple, make sure you make decisions together. Sometimes the savvy spender can become miserly, so you’ve got to watch out for that.
The miserly spender maybe has a negative connotation to it, but it doesn’t have to be. This type might come from your upbringing, based on what your parents went through. But having a huge savings or nest egg isn’t the only goal. You may want to spend some of that money and enjoy it sometimes. Especially if you are married to someone who is a different type of spender, you’ll want to work together to figure out the right balance.
Ultimately, you may have spent time as all of these types of spenders over time. No one wants to live in regret, so it’s good to understand your personality type and how to plan accordingly.
Listen to the entire episode or use the timestamps below to skip ahead.
0:30 – The 4th of July is here!
1:06 – Let’s talk about the four different types of spenders.
1:47 – The emotional spender.
3:46 – The YOLO spender.
7:23 – The savvy spender.
8:42 – The miserly spender.
A Quotable Moment:
“An advisor is just that—an advisor. They’re there to give you advice, tell you pros and cons, walk you through that, hopefully bring some reason to the decision. But at the end of the day, it’s your plan, your money.”
-Phil Putney