Wednesday, April 4, 2012

Guest Post: Are you a Spender or a Saver and What this Could Mean to your Family


Are you a Spender or a Saver and What this Could Mean to your Family 

Spending habits directly impact the well being of the entire family. It is important to determine which type of money handler each adult in the household is in order to make changes which achieve the most comfortable financial situation as possible. The three groups are spenders, savers and even keeled. After discovering what category each person is in, it will be easier to target specific areas that need adjustments in order to live a financially healthy lifestyle.

Spenders have a tendency to spend every dime available without forethought to the future. These people are not well-versed in how to handle money properly. This type of spending can result in serious financial issues including foreclosure on a home or repossession of vehicles. This type of financial situation is irresponsible and causes great detriment to everyone in the family.

In order for a spender to become more of a saver, he or she must take drastic measures to ensure a healthy financial present and future. Retirement knocks on the door much sooner than expected. A spender might find him or herself in the position of having to work longer in order to survive. The first thing to do is to speak with a debt counsellor. A debt counsellor can help shed light on the most problematic areas that will make the most difference. A debt counselor will set up a plan that will get the personal debt lowered while providing a level ground to save for the future.

If debt has not become an issue but the ability to save still is not present, a financial planner may be the best possible source of help. A financial planner will help set up accounts for saving that also earn the most money over a long period of time. The best thing about these types of accounts is that it cannot be withdrawn for a specific amount of time once the money has been deposited, preventing temptation from becoming a problem.
Someone who is a saver may suffer from another type of problem. It is often called being cheap or frugal. This type of person lives in such a manner that the entire family could suffer from it. For instance, someone who is cheap or frugal might cut the spending budget so much that they will not allow enough for food each week. These people stick strictly to the budget without apology. This has a detrimental effect on the entire family. It can be caused by the fear of a previous financial downfall or possibly poor conditions in their family when they were young.

A saver is not in trouble from saving, so it comes down to a matter of being realistic. This person may benefit from counselling that lays out a plan to continue saving money but understanding that spending a portion of the money they earn is acceptable when not taken to extremes.

Finding level ground when it comes to spending and saving brings peace of mind to the person who is dealing with financial issues. Balance is the key to true financial freedom. Financial freedom is not just about being able to survive; it is about being at the highest level of financial comfort as possible throughout the life cycle.

My name is Nisha Sharma and I represent a site called http://www.winnow.co.uk.

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