It’s hard for some Americans to get a firm grip on reality—at least when it comes to overspending. America is a capitalist society in recession, and major corporations continue to influence the Everyday Shopper to spend, spend, spend. Consider these spending scenarios and ask yourself if you are impulsive spender, too much of a tightwad, or somewhere in between.
When your local retail store announces a clearance sale what do you do?
- You arrive early, credit card in hand, and buy everything of the slightest value.
- You think about what you need and carefully plan a budget.
- You don’t even think about going—too risky.
- You buy what you want but try and cut down on other expenses for a few months.
In general, what is your mood when spending?
- You buy when you are happy.
- You buy when feeling depressed.
- You feel envious, as if you have to keep up with your friends.
- You buy in cycles, running up debt for a while and then paying it off in a few months.
- You don’t shop according to mood. You budget spending money and plan in advance for everything you intend to buy.
How do you go about saving money?
- You set aside at least 15% of your income for retirement, college education, emergency funds and savings or 401k.
- You faithfully succeed at saving at about 5-10% every month.
- You try for 2-3% of your income for at least emergency funds and retirement.
- Oh…you should probably start doing that, huh?
How do you generally feel about your spending habits?
- Confident, you have achieved your financial goals.
- Cautiously optimistic. You plan carefully and spend carefully.
- Hopeless. Things are bad and probably getting worse.
- Oh, you never thought about it until now…now you’re in a panic!
A lifetime of impulsive spending catches up to you quick! On the other hand, it’s never too early to start thinking about saving and spending cautiously. If you are a spendthrift, it might be high time you figured out how to create a budget.
Popularity: 1% [?]
twitter wordpress plugin