7 Types of Savers: Find Your Money-Saving Strategy

Introduction

People are looking for ways to save money but don’t know where to start. It can be overwhelming trying to figure out how to start saving money when your bank account is looking a little thin.

In this article, we’ll be sharing the different types of frugal money savers so that you can find the best way for you to start saving.

The Save and Spend Kind

The save-and-spend kind is probably the worst kind of saver. This kind of person is dubbed to be the least likely to achieve or even have any saving goals at all.

This kind of person likes to place a large portion of their income into their savings account but often uses it all up anyway for different reasons.

One of the most common reasons these people end up using all the money in their savings account is because they save too much.

Don’t get me wrong, but taking too much from your monthly income to save is not actually a wise move, as then you would be lacking in your funds for basic necessities.

Another reason these people have very low success rates when it comes to saving is because they fail to control their urges once they see something they like but don’t need.

They tend to buy it without hesitating to take it from their hard-earned savings. A way to avoid becoming this kind of saver is to portion your monthly income properly so that you have enough to pay for both your basic necessities like groceries, the things you like, and your savings.

Once you manage to get the perfect calculation so that you won’t sacrifice too much just to save, you should then try to keep in mind that your savings account is not something you can take from easily.

For some people, the portioning can be 40 percent on savings, 10 on investments, and 40 percent on basic needs. But for some, that can be a bit too much.

The Occasional Saver

The occasional saver, the next kind of saver, is not far from the saver and spender kind of saver, as they are also not that successful in saving for a financially secure future.

What often happens with this kind of saver is that they choose to save only when they have a very specific goal in mind.

Which doesn’t really sound like a bad thing. However, the problem with this kind of habit or mentality is that they only ever save their money when they have the motivation to do so.

Motivation is as fickle as candlelight; one small blow from the wind and it could be gone in just the blink of an eye.

Relying on having the motivation to save and not making saving an actual habit is dangerous in the long run, as it will take much longer to reach your goals, possibly not even reach them at all, because motivation is also a very volatile reason to save.

This kind of saver is also prone to becoming a distracted saver, another kind of saver that we will discuss later.

One of the best ways to avoid becoming an occasional saver, bringing you closer to being a distracted saver, is to make a habit of saving.

Have it set firmly in your mind that a good and specific dividend from your income goes into your savings account, avoiding reasons why you should take large amounts from it in the first place.

Setting a good long-term goal will also help with avoiding being an occasional saver, as then you wouldn’t rely on just motivation to get to your short-term goals.

The Distracted Saver

The distracted saver, similar but not the same as the occasional saver, often starts out as someone who thinks saving is not important to their financial security.

This kind of saver is typically very impulsive and extremely impatient, which is the main reason why they almost always fail at saving.

Because they have impulsive tendencies and just make a purchase without thinking, they often forget to have a separate dividend from their monthly earnings, specifically for saving.

This kind of saver is usually the one that you see splurging on unnecessary stuff on payday, which you can guess from just seeing them, but they are not worried about saving at all.

However, not all of these people are bad, as some of them are actually quite aware that it’s going to be a problem in the future, hence the term distracted saver.

Despite being aware of that, some of these savers refuse to do anything about it, leaving the problem to their future selves, as some would like to say.

Nevertheless, there is still hope for you if you identify yourself with this kind of saver.

The first step in making any change is being aware of the problem. So think to yourself about what you spend large sums on when you have the money.

From there, you can start to plan a budget that will allow you to have savings while still being free to enjoy life in a much less extravagant and wasteful way.

Now all you would need is self-control and the habit of saving, as this will help you feel like saving is second nature in the long run.

The Pendulum Saver

The pendulum saver: pendulum savers are those that need only very little work to be able to achieve their financial goals by saving, as they still are able to save.

However, this kind of saver is not the healthiest one to be, as where the others still spend money whenever they feel like it, the pendulum saver goes between spending and not spending at all.

They are stuck in a cycle, which they can get out of but will need all the help and advice they can get to do so.

This kind of saver often spends so much in one month that they forget to save and leave the bare minimum the next to make up for their splurge.

This is a very unhealthy habit because the more they spend, the more days they sacrifice, often allowing themselves to go days without basic needs.

One way to avoid being a pendulum saver is to have a budget you can firmly stick to, allowing yourself to buy needs and wants while still saving.

Driven Saver

Driven Saver: The driven saver is probably one of the best kinds of savers, as these guys don’t rely on anything just so they can save for a good future.

All they need is a challenge and a means to beat that challenge, and they will do all they can to meet their saving goals.

This is the kind of saver that won’t even need any convincing from anyone at all, as they already know what they want and have the drive to get it.

This is the kind of saver many should aspire to be, as they have a very high chance of succeeding in living a financially secure future.

The Investment Saver

The investment saver is not a saver who is easily satisfied with the idea of just saving money and leaving it for future use.

This saver saves to invest, so their money can grow with them barely doing anything about it. One of the common things they’ll say is that they don’t like just letting their money collect dust.

So they put it in all kinds of investments like real estate, stocks, and cryptocurrency. However, these people also live a very risky financial life, as investments are often extremely volatile, and they could have huge losses in the blink of an eye.

Before you consider becoming an investment saver, make sure that you know what kind of investment you are getting yourself into.

Seek professional advice or do your research, as you should know that placing your money in stocks and cryptocurrency can be a very risky move.

The Natural Saver

The natural saver, the natural saver, or the born saver has it the easiest, especially since they don’t need to even try to save.

These people have a strategy to save and know all the ways they can spend less and less money, like it was the back of their hand.

They are the ones who won’t be able to relate to people who like to splurge on things they don’t need, especially since they really scrutinize expensive things they can get for cheap.

This is the kind of saver that won’t take too long to live in a financially secure future, all because they know that they must save for it.

To these people, saving becomes a hobby, and they take every opportunity they can to save, even just a couple of pennies.

There isn’t and could never be a single perfect method to save money, as everyone’s financial situation is always unique. Sure, some people can have very similar situations, but the circumstances that lead up to and surround them are never the same.

Knowing the saving strategy that works for you may take you longer than it does others, but awareness and seeing it as a problem are always the first and most important steps you can take.

From there, you can make a detailed plan about what kind of financial situation you want to live in in the future and what kind of saver you want to be.

Without a plan, you might be spending more than your capacity; on the other hand, you can save a lot of money by living below your means.