On this episode of Saving the American Dream, we’re talking about the different personalities of spenders and how those traits could affect your retirement.

Emotional spender

Had a good day? Go out to eat. Had a bad day? Go out to eat. Stressed and tired? Go out to eat.

Developing a budget is crucial to planning for retirement, but emotional spenders love to base everything on the emotion at the moment. People go through different stages in life where they take on different spending personalities.

YOLO spender

Using the “You Only Live Once” philosophy, these spenders go overboard on lavish expenses and purchases.

These tend to be people who didn’t have much money and then inherited a bunch. They often feel guilty for getting so much money. Some want to give family members a lot of money or spend lavishly. But we always advise them to be careful and plan for the future.

Savvy spender

Savvy spenders tend to have a budget and evaluate every purchase, being frugal, and only spending when needed. They also prioritize quality over quantity and spend on experiences instead of stuff.

It’s very difficult to be a savvy spender all the time without having those systems and processes in place to make sure your balance sheet is working for you and your family first.

Listen to the full podcast or use the timestamps below to jump to a specific section.

Navigating the Show

[1:05] – Emotional spender

[3:52] – YOLO spender

[5:46] – Savvy spender

[11:16] – The miser

[13:42] – Mailbag: IRAs

[16:05] – Mailbag: Kids

“It’s very difficult to be a savvy spender all the time without having those systems and processes in place to make sure your balance sheet is working for you and your family first.”

– Michael Schulte