Penny and pound, what kind of saver are you?

photo credit: davespilbrow

Penny wise pound foolish - Save on the little things, especially daily expenses like food. However, when it comes to big ticket items like the latest electronic gadgets, this group of people will not be able to resist the temptation to buy. They tend to waste their effort on saving in one single purchase.

Pound wise penny foolish - Splurge or willing to spend a little more on daily necessities like food. Not much craving for big ticket items (maybe because they ran out of money on the little things).

Penny and pound foolish - This is the worst case and likely to end up in big debts.

Penny and pound misers - They are stingy to the core. Do not even bother to ask for a piece of tissue paper from them. Saving for the wrong reason.

Penny and pound wise - This should be the target for all savers. You need to cut down on unnecessary spending, daily expenses and also planned big ticket items. The key is UNNECESSARY - I am not trying to suggest to you not to buy anything or pamper yourself. Do it occassionally when you really need the luxury to keep you motivated in life. Every single dollar is precious, you do not want to save many dollars and in the end, squander on big ticket items that you do not really need (or could have gone for a cheaper alternative). Unlike the misers, you should be willing to give and share. Remember to share a bit of what you have, with your closest people and charitable organizations. Proper money management is a skill required to achieve financial freedom.

So the next question to ask, "What are you saving for?" Save because you have to? Save for rainy days? Save for retirement? Save for security? Save for big ticket items? What are you going to use the money for? You better ask yourself seriously as by knowing what you are saving for, you save better.

Share with us, what kind of saver are you and what are you saving for?