What do you prefer? spending or saving?
In the realm of personal finance, the age-old debate about living opulently, exercising restraint, making wise financial decisions, and sticking to necessary spending will endure. A recent study of American shoppers provides an interesting viewpoint amidst the spend vs save ongoing debate: it indicates that people who identify as “spenders” are generally happier than people who identify as “savers,” and that people who identify as “savers” are typically seen as prudent and wise with money.
2000 Americans surveyed for this spend vs save study
In a survey of 2,000 American consumers, it was shown that 56% of respondents saw themselves as “spenders,” going over budget for things they truly wanted, while 34% saw themselves as “savers,” delaying purchases until an item goes on sale or becomes necessary. 10% of respondents, however, denied being either type of shopper. It should come as no surprise that spenders spent over twice as much on non-essential products ($621 vs. $348) during any given week as savers. Conversely, savers were observed to allocate a less portion of their overall income (18%, as opposed to 22%) to non-essential items.
The news portal also revealed that spenders reported higher levels of happiness in their personal lives (77% and 71%, respectively), professional lives (78% and 57%, respectively), and relationships (78% and 63%, respectively). It’s interesting to note that spenders (73% and 56%, respectively) were happier with their financial lives than savers.
Whats the other side of the story
Nonetheless, one can become financially independent and lessen their need on debt by making sensible investments and savings decisions. Anyone can feel less stressed and have a higher quality of life with this flexibility. This idea is further supported by the study, which shows that savers may have an advantage in money management as they only spend 29% of their annual income on random expenses, as opposed to spenders who spend 38% of their income on such items.
According to a OnePoll poll commissioned by Citizens Pay, 59% of respondents “often” and “always” consider the financial implications of large purchases before determining whether or not they are worthwhile. Furthermore, spenders are more likely than usual to take the financial implications of a large purchase into account (61%), despite their inclination for spending.
