How to Prioritize Investing When You’re Wired as a Spender

Generally, I believe people are wired as either a saver or a spender. However, I do feel that we fall more on a spectrum and not firmly on one side or the other.  

Personally, I lean heavily in the direction of saver (no surprise), but I certainly can go on a run of high spending. Thankfully, my general disposition toward saving and investing prevents it from getting out of control and I return very quickly to my baseline.

If you’re more a spender, and need or want to take steps toward investing for your future and delaying gratification, there are some helpful strategies you can try.

Reframing Strategies

Does this purchase truly serve me, either now or in the future?

Look, we’re all going to buy things that simply make us feel good. Once in a while, that’s not a problem. But limiting those purchases – especially really large ones – is key to wealth building.

What matters is whether purchasing decisions are run through any sort of filter. I have found that by asking myself whether the thing I want to purchase truly serves me or not is a great way to weed out unnecessary spending.

Would I rather have this thing, or would I rather have the money?

If you’re an impulse purchaser who commonly feels buyer’s remorse, this one may speak to you. The remorse you feel is an indication that somewhere deep down, you realize that not only was the purchase unnecessary, you’d also rather have the money in your account.

I have this type of conversation with a good friend of mine on a regular basis. He has an addiction to cars and gets trapped in the cycle of upgrading his ride only to realize he’d rather have the money. Typically, he will end up selling the car, downgrading to a less expensive vehicle, and using leftover funds to pay down personal debts. After 6 months to a year, he is back in a newer car and the cycle repeats itself.

Recognizing that compounding takes time, can I be okay with less now so that I can have more in the future?

This is a bit tricky, so let me expand a bit.

Yes, you only live one life and you can’t take your money with you. There is a balance, however, to living life today while also planning for tomorrow. You don’t need to live on rice and beans for years with the expectation that you will live your best life once you have enough money saved. Life doesn’t work that way.

Only you can decide what that balance is, and your goals will feature prominently in that decision making process.

Final Thoughts

Changing habits is difficult. It takes time, practice, and perspective – which is where I hope these strategies are helpful.