According to a survey conducted by One Poll for Ladder in April 2019, an average American spends about $1500 every month on unnecessary things like fancy dinners, hangouts with friends, traveling, subscription boxes, rideshare trips, and many more, which makes it around $18,000 a year—an insane figure. If you're already blown away by this, wait…there is an even more surprising fact you should hear. Do you know what? On average, an American makes at least five impulse purchases every month—YUP, you heard right! But do you know what's even more enjoyable? These impulse purchases are estimated to go beyond $100 per month. Just imagine you spend $100 every month on stuff you probably don't need, which could have made you a lot of money if you had chosen to invest.

Do you know what's saddening? We live in a day where 58% of consumers don't even have money to afford many life essentials or to put aside money for their long-term goals, yet they'd like to keep up with the Joneses. The statistics report 2019 shows a significant rise in consumer spending since 2014, and it's likely to increase in forthcoming years. Interestingly, in just the first quarter of 2019, consumer spending reached an insane figure of $14.2 trillion, with a massive drift towards online shopping.

As a financial coach who gets to hear real-life stories & meet many women struggling financially daily, these stats are shocking for me. We often don't realize how much we are splurging and how little we save until reality knocks on the door, and when it does, it doesn't show any mercy.

You see, everyone has a distinct spending behavior and a unique personality, priority, psychology, and experience. You may come across people who spend money like water and those who are frugal. In both cases, one thing is missing—the right balance or money distribution.

Let me tell you an exciting thing…there is nothing wrong with spending money. On the contrary, money needs to flow to expand. However, how you pay is not a money issue but a mindset issue. Your mindset reveals a lot about your specific spending behavior. For example, if you've grown up living hand to mouth, it's likely to have a minimalist mindset, or if you've grown up in luxuries, odds are you may not value money.

But here is a thing to ponder, your future is tied to your current spending behavior. Let me tell you that there isn't anything wrong with spending as long as it doesn't risk your financial future. This is why learning about your spending type is essential to make better decisions about your money aligned with your goals. (Keep reading to find out your spending type)

Here, I have compiled a brief guide to different types of spending personalities to give you maximum insights about each of them. Read below to see where you fit.

Do you want to know more about what type of spender you are? Take the quiz! Just click here.

Sale Spender 

If you're someone who can't resist sales, is always on the lookout for discount coupons, or believes bargaining is your right, then you're a Sale Spender. Most "sale spenders" believe they are potent savers because they shop from the sale, but they fail to realize one thing. 90% of the time, the stuff they buy is neither their necessity nor a want. You're still losing money even if you're shopping from sales or using discount vouchers.

But if this is something you love and don't want to miss out on the next Black Friday Sale, I have some excellent news for you. As I told you earlier, you can spend on the thing you love if your financial future is secured. So, make a habit of setting aside some cash just in case something comes up and keep doing what you love staying within your spending limits. So, next time when you hit the year-end sale, be sure to buy only what you need and not something with the biggest discount.

Status Spender

If you're someone who uses the money to elevate her social status, shops from only high-end brands, and don't care about the price, then you, my friend, are a Status Spender. Most "status spenders" use money to portray a joyous and abundant status, and in doing so, they often lose a grip on the most important thing—their financial freedom.

So, if you're struggling financially to keep up with your extravagant lifestyle, it's time, to be honest with yourself. You see, nothing is wrong with maintaining the status as long as you can afford it without compromising your future. But if your financial future is at risk, giving a false image of money would do more harm than good. In that case, only one thing can get you far--maintaining a sustainable lifestyle. So, next time when you feel the urge to grab the latest limited-edition Gucci mini shoulder bag, be sure to peep into your savings account first.

Emotional spender 

If emotions trigger you efficiently, you can't resist reaching out to your wallet and shopping until you feel good about yourself. Then, for sure, you're an emotional spender. Most "emotional spenders" are impulsive in their purchases; they would buy anything they like even if they don't need it. But there is something they miss out on every time they make an impulse purchase—a chance to build their wealth.

You see, being careless with money in pursuing "happiness" is not a good idea because it can throw you in debt, make you live paycheck to paycheck, or, worst case, break you. But if you want a little celebration because you got a promotion at work or you want to buy something you love because you feel low, then I have a plan for you.

You can continue enjoying life experiences if you have put aside money in some suitable place. When you engage in money-making activities, you build more wealth, and thus, you can spend on things you love. But don't forget that staying within your spending limit is the key to financial freedom.

Essentialist

If you're someone who tracks her expenses closely, spends only on necessary things, and constantly progresses towards long-term financial goals, then there is no doubt that you are an Essentialist. Essentialists have a minimalist mindset that helps them stay focused on their life goals, which unlocks more opportunities. Most essentialists strictly control their cash, which is a good approach, but one thing can help you grow your money—investment in good places. There are many ways to make your finances easy such as automating savings, using money tracking apps, etc. Last but not least, learn to live your life too. Life is precious, and a little fun can bring more meaning to your life.

Free Spirit Spender

If you're someone who doesn't bother about money much, lives in the present moment, and mostly lives off the charity of others, then you're a Free Spirit Spender. At the same time, you may believe in going with the wind flow and hoping that things might work out for you in your favor. Sorry to burst your bubble, but this is not a sustainable lifestyle. Having no plans to save for retirement and spending what you have isn't something to be proud of.

But if you still don't want to give up on your vacations, trips, or hangouts, there is only one way to help you--creating a spending plan. When you set your priorities, make the right spending plan, and save aside cash for your retirement, you are all by yourself to do whatever you want. So, if you want to enjoy your next summer in Europe, save enough to enjoy your experience.

Exhausted Spender

If you're someone who lives paycheck to paycheck, trapped in credit card debt, but can't stop spending, then without any doubt, you're an Exhausted Spender. Most "exhausted spenders" are ignorant of saving things, but they don't realize that they might not be able to have a comfortable retirement or keep up with their current lifestyle in the long run.

While you may have a big heart and love to help others, you must know that you can't pour from an empty cup. When you don't have enough savings for yourself, then there is no way that you could help anyone else. So, the best way to live your life the way you want and keep helping others without sacrificing your quality of life is to start saving and sticking to your spending plan.

Make sure to take the quiz and find out what type of spender you are.

I'm Sara Chevere, the Creator and Founder of Finance Babe. As an Intuitive Financial Coach, I have helped many professional single/divorced women struggling to manage their finances. With the proper spending plan and proven money strategies, I have helped women as you become financially fit and solve their financial problems. If you're still confused about creating your spending plan, don't hesitate to reach out to me. Hop over my online schedule. Let's sit together, talk about your dreams, desires, and goals and create your custom spending plan, so you become a fierce finance babe.