Psychology of Spenders And Savers

There are two types of people in the world: those who spend and those who save.

SPENDERS

Compulsive spenders do not want to delay gratification. If they want something, they will purchase it right away…as long as they are happy. It worked so well in the past, so they stick to the same habit. But, when expenses and debts extremely increase then, it is the time they realize that they need to kick that habit away.

Here are 3 ways to prevent your impulses and to help you save:

1. IDENTIFY YOUR FINANCIAL GOALS

How much do you need when you retire or how much do you need to pay for your child’s education? Ask yourself these questions to identify your financial goals. Then, be vocal about it to your friends and family.

2. NEED VS WANT

Before purchasing anything, evaluate and know whether you need or want the item. Then, purchase according to your budget.

3. STAY AWAY FROM THE PLASTIC CARDS

By using mainly cash and withdrawing it from your bank account, then you became more aware of your spending and your account balance.

SAVERS

For financially aware individuals, the act of spending can activate neural activity in the anterior insula and amygdala. These two parts are responsible for the mood and unpleasantness felt. This is why the more these two are activated; the less likely a financially aware individual will spend. On the other hand, the act of saving will bring immense pleasure to them.

While many people take pleasure in purchasing things, some savvy savers do not feel the same. Instead some of these people are uncomfortable when shopping, they constantly look for the price tag and calculate the total, and they feel emotionally painful when they are paying. If you are not experiencing enough pleasure in life, you deserve to loosen up and enjoy spending every once in a while.

So, what brings the pleasure back as a savvy saver that is spending?

1. STAY AWAY FROM THE PLASTIC CARDS

Give yourself the vacation or rest day you deserve by budgeting a portion of your money to a category called “personal incentives”. With that money, you would not need to use your credit or debit card since you have already set aside the cash to cover it. Now all you can do is relax and take your mind off the expenses.

2. PURCHASES=REWARDS

At the end of the month and once you meet your savings goal, reward yourself with the pampering you deserve for working hard and doing so well. To prevent frugal fatigue, reward yourself by using a responsible amount of 4% – 8% of your savings.

3. THINK OF THE FUTURE

Study has shown that people are happier when they spend their money on experiences (e.g., sky diving) than in goods (e.g., Gucci bag). So, do the same with your personal incentives. Do you really want to regret experiences you did not take because you don’t want to spend money on enjoyment?

Image Credits: Tax Credits via Flickr

Image Credits: Tax Credits via Flickr

Even though you belong in one category now…you can still change! Whether you are a saver or spender, you hold your financial present and future.

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Score Great Deals At Flea Markets In Just 5 Steps

1. NARROW DOWN WHAT YOU WANT

Know what you want to buy before coming in to the flea markets. A whole area of second hand and budget-friendly items can be overwhelming so it is best to come prepared. The more focused you are, the easier it is to avoid impulse purchases.

2. MEASURE AND RE-MEASURE

To avoid buying furniture that does not fit your home, measure the room dimensions accurately by using a tape measure and a ruler. If you want to match an item with the room then take a picture or bring a fabric piece with you as you buy.

3. TIME IS ESSENTIAL

You will get the best selection in the first few hours of sale but vendors are reluctant to negotiate early one. So, if you want to save more then wait until the final day. But, expect your selection to be slimmer.

4. DO RESEARCH

Be sure to do your online research before shopping in the flea markets. This way you will be able to spot if the item is overpriced. Then if it is, use your bargain powers to sway the price.

5. GET CREATIVE

The items for sale may be multi-purposed. For example you are looking for a sideboard to put your dishes in, but a dresser/drawer has a better price. Grab the gorgeous dresser instead since you may use it as a sideboard.

Image Credits: US CPSC  via Flickr

Image Credits: US CPSC via Flickr

 

BONUS! Here are some of the recommended and unique flea markets you shall visit…

A. MAAD (Market of Artists and Designers)

MAAD houses pet-friendly and budget-friendly items for the whole family. Their innovative creators are from independent and are known for artsy fashion and artisan stationary pieces. Here you will find a wide array of crafts, plush toys, handmade jewelry, and paintings. The price range starts from S$10 to S$50. Visit museum.red-dot.sg/maad/ for more information.
B. ZOUK FLEA & EASY

Zouk, one of the famous clubs in Singapore, organizes a flea once every three months. From trendy pre-loved threads to hipster rags at bargain prices, Zouk Flea & Easy offers an eclectic flea experience.Blogshops are welcome to participate! Visit zoukclub.com for more.

C. CHINA SQUARE CENTRAL (CSC)

CSC has a Sunday flea market that offers DVDs, souvenirs, and electronics for less. Aside from that, comic book junkies can grab the later issues and action figures at CSC’s Level 2. Price range starts from S$5 to S$30.

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7 Household Troubles to Fix Yourself and Save More

1. HOLES IN THE WALL

To fix the white wall blemishes that are smaller than 1/4 inch wide then try covering it up with plain toothpaste. Put enough to fill in the whole and scrape off the excess with a knife. If the imperfection is still evident then sand it flat and re paint. For larger cracks you will have to cover it up with “wall filler or spackling compound” that is available for about S$5-7 at the hardware store.

2. UNEVEN WOODEN FURNITURE AND FLOORS

To avoid sanding the whole floor or table to smoothen it up, try this simple solution. Spread a wet towel over the scratched or uneven area then place a hot flat iron on the top then move it in a circular motion for 3-5 minutes. Color it with varnish afterwards if you want.

3. CLOGGED DRAIN

To clear the drain, avoid chemical cleaners as much as possible. Most clogs are in the P-trap (curved pipe below your sink), which is usually easy to access yourself. Place a bucket below to catch any overflow and unscrew the two connections. Clean any debris inside then, screw everything to place.

4. WOBBLY CHAIRS

To silence the creaks and to stabilize the chair’s frame, tighten all the screws first. If the chair has interlocking joints, disassemble the joints. Fill the cracks with an adhesive to bring the parts together.

5. LOOSE CABINET DOORS

Loosen the cabinet screws on the hinge to adjust the door up and down. Adjust accordingly then, retighten once again. A worn out or a bent latch can be replaced by a new one.

6. DIFFICULT SLIDING DOORS

To smoothen the move of the sliding door, you must clean the debris that are jammed within the track and the wheels. Clear it all by running a paintbrush or vacuum along the track.

7. CLOGGED TOILET

This is one of the usual issues faced in the house. To unclog your toilet, use a plunger that is completely submerged. Plunge vigorously! If this does not work, then buy a toilet auger or plumber’s snake in hardware stores that cost about S$13-15. Insert the flexible tool into your toilet drain then rotate it around.

Image Credits: Gary J. Wood  via Flickr

Image Credits: Gary J. Wood via Flickr

There you have it. See, you can solve household problems without calling for backup!

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Reuse These 7 Household Items To Increase Savings

Stop throwing things out and try these 7 Ways To Reuse Household Items To Increase Your Savings. It not only saves money but it also shapes your creativity.

1. BROWN PAPER BAGS

Want to scratch off plastic book cover to your school supplies list? Then, reuse the brown paper bags you carried from the grocery store to cover your children’s textbooks. You may also cover their notebooks and label it easily with a marker.

2. PLACE MATS

Your place mats can be transformed into colorful drink coasters. Just cut your place mats into circular coasters and place it on the table. Most place mats are water-resistant, plastic, and made for wear-and-tear, so no extra steps are needed.

3. OLD AND UNWANTED T-SHIRTS

Put your worn-out, old, and unwanted shirts into use by cutting it into handy rags. Your arsenal of cleaning supplies will not only expand but your closet will be free from space also.

4. CEREAL BAGS

If you’re a family who loves cereal, then you can avoid buying wax paper again. Wash the cereal bags that come with the box because it can be reused to wrap sandwiches, cold cuts, or freeze meats.

5. CONTACT LENS CASES

Old contact lens cases that no longer hold the lenses can be filled with your daily vitamins. Just wash the cases carefully before using it. This will be a handy way to take your pills wherever you go.

6. CANDLES AND CANDLE WAXES

No need to throw away burnt candles or candle waxes since you can convert them to pincushions. Roll up the wax into a round shape to house your pins and needles.

7. COFFEE MUGS

Being a clumsy menace myself, chipping off the handle of a coffee mug is unavoidable.

Image Credits: EUNOIA via Flickr

Image Credits: EUNOIA via Flickr

Do not throw these mugs just yet because they can be used as perfect homes for your small flowers or herbs. Fill up the mug with soil, plant the seeds or flowers, and place it on the windowsill to have your own portable garden!

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Shopping Intervention: 7 Things You’re Doing Wrong

1. GETTING TEMPTED WITH THE EXTRAS

You may go shopping during a huge Laptop sale and save big time on what you need but find yourself purchasing its costly accessories. Extras for laptop, computer, Smartphone, and so on can be purchased at a bargain price online on Ebay or Carousell rather than from the shop itself. Shop for the necessary, weight your options when buying extras, and look at the bigger picture.

2. COMPARING PRICES BY SHOPPING

Compare prices online or through magazines and newspapers instead for buying the items yourself. Also, when comparing prices, give yourself a time limit (e.g., 20-30 minutes). This is because people who can’t stop looking for the next best deal are never satisfied.

3. LETTING IMPULSE TAKE OVER

When impulse takes over your shopping, you regret purchasing an item the minute it arrives. To know if you really need and want something, walk away from it and you will save money. As most heard: “if you love something, set it free”. And, if you find yourself thinking about it after 24 hours then go back and buy it.

4. OVERSPENDING DUE TO AN ATTRACTIVE DEAL

Online shoppers are found to spend over 1/3 more when the shipping is offered for free. This is because the attractive deal catches you. Avoid overspending by writing down the things you need to buy and sticking to it.

5. NOT NEGOTIATING

Most goods are negotiable these days. You would not know if there is a sweeter deal if you do not ask. You do not have to say: “Can you give me a discount?” directly if you are shy…use “Can you work with the price with me?” instead. Before negotiating, be sure that you did your homework about the competitors’ prices first.

6. TRYING IT ON

If you are not prepared to buy an item for its price, do not try it on. Psychology suggests that physically touching a product makes you desire to buy it more. Touching a product can lead to lingering and prolonged feelings of ownership. This is why clothing stores have an abundance of changing rooms or why more expensive grocery items are just within your reach.

7. GOING FOR RETAIL THERAPY

People often know that you must not shop hungry in a grocery store because you would end up buying everything that satisfies your hunger.

Image Credits: Pedro Ribeiro Simões via Flickr

Image Credits: Pedro Ribeiro Simões via Flickr

Same goes for other aspects of shopping, it is best not to shop angry or sad. Shopping while you are angry makes you more likely to take risks. While, shopping while your sad may fill up the void in your heart but empty your wallet along the way. Making retail therapy a habit can turn in an unhealthy and costly addiction.

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