Smart Cookies

It’s a New Year and it’s a new chance to start clean. Many people look to this time of year to take control of their spending. In fact, a recent survey showed that the top three financial goals people have set for this year are; to pay down debt, to save each month, and to buy only what they can afford. Do those goals sound familiar to you? If you are also looking to take control of your spending this year you need to have a smart spending plan in place.

The best way to control your spending is to understand the way you spend your money. Once you know, better, what kind of a spender you are, then you can start to change the way you spend. We have come up with 5 personality types with a few tips for those personalities.

Regardless of your personality type, we have some helpful tips to make those New Year’s money resolutions stick.

To find out your spending personality take the quiz, or you can browse through our personalities below and find out which one(s) ring true to your shopping style!

Yo-Yo Spender?

A Yo-Yo spender tends to deprive themselves financially some days then overcompensate on other days hoping it will all even out in the end.

So to avoid the added risk of bouncing a check, maxing out a credit card, or getting hit with high overdraft account fees on the days when Yo-Yo Spenders overcompensate, ask yourself – what’s the best way to keep yourself accountable? That’s why we use an American Express Charge Card for all of our purchases because it helps us stay in financial control since the balance is due in full at the end of each month, plus we get extra protections, services and rewards that don’t come with debit cards.

We recommend setting up a separate “splurge approved” savings category. Automatically contribute to a separate no fees account or if you have a big purchase item in mind, plan ahead and set aside an approved amount for that item. Knowing you have the money set aside will keep you from going too wild when you feel deprived.

Slacker Spender?

A Slacker Spender is someone who prefers convenience over cost (e.g. buying lunch at an overpriced deli near the office instead of walking the extra block to the less expensive sandwich shop).

We suggest gathering bank statements from the last three months and adding up how much convenience is costing you. Look at the ATM fees, cab receipts, lunch from the corner deli etc. You’ll be blown away at what that number adds up to. So carry that number with you on a piece of paper in your wallet and look at it every time you’re tempted to pay more for convenience. We guarantee the easy way isn’t always worth it when you know how much it really costs.

Sale! Spender?

A Sale! Spender loves a great discount or clearance and tends to scour online for the best deals and coupon codes.

We also recommend setting up a Sale Alert Hotline with a friend who can help you rationalize if the deal is really worth it or not. The key is to call a friend who knows what you need and what you actually use. If the sale doesn’t get the hotline approval, then leave it and move along.

Zombie Spender?

This is someone who pays little attention to where his/her money goes. And when you spend money without thinking about it, it’s very easy to overspend.

Also, make sure you only buy what you can carry out. When you know you have to go shopping, bring your own reusable shopping bags that fit exactly what you know you have to buy. That way, if you find yourself on auto-pilot, you have a fool proof way to make sure you can only leave with what you can fit (and afford) in your bag.

Status Spender?

A Status Spender prefers brand names over bargain prices and wouldn’t dream of cutting corners with cheap knock-offs.

You can also take advantage of other less expensive options out there to satisfy your brand cravings like locate the best consignment store in your city. Often times you can find brand name items (sometimes never worn) at significantly lower prices.