The following is a guest post from Evan who blogs at StockInvesting101.net.
There are obviously two distinct personalities in this world as far as finances come. There are savers, people like myself, who pinch every last penny. We get more excited when we save 50 cents off a gallon of milk then we do when we buy a new car [It’s not like a saver would buy a brand new car either way]. We prefer to buy assets, investments that will increase in value over time as opposed to burdening ourselves with materialistic liabilities, things that decrease in value over time.
The second personality group belongs to the spenders. We definitely have a disproportionate number of spenders to savers in the United States these days. The United States saving rate is floating between 0-3 percent, meaning that we hardly save any of the money that goes through our hands! Spenders worry more about today than tomorrow. Buying a brand new car, a fancy 50 inch TV, and a 120 dollar pair of shoes that were “on sale” makes spenders happy.
I have been wondering lately whether savers are born or made. I instinctively first think that savers are born. As a five year old I got a great thrill out of counting all of the money I had to my name each and every week. My older sister, who happens to be a big spender, got mad as me as a child when I refused to pool my money with hers to buy “Moon Boots” which were all the rage when I was an elementary school child. She paid 20 dollars for the Moon Boots and used them for just 30 minutes, but that is besides the story.
However recent developments have made me reconsider my stance on this topic. In 2006 and 2007 the national savings rate actually turned negative, meaning that citizens of the United States spent more then they earned. The economy was doing well, only 5% of workers were unemployed, and stock market indexes were at all time highs. In 2008 and 2009, once the financial crisis and recession hit, the national savings rate shot up to a respectable 5%. This is similar to what went on before and after the great depression as well.
It is obvious that people are born with natural tendencies, the tendency to spend or save your money is one of them, but people, experiences, and events can always change one’s ways.
