The age-old discussion surrounding living lavishly, practicing frugality, making prudent financial choices, and adhering to essential spending will persist in the world of personal finances. In the middle of this ongoing clash of ideas, a recent study, conducted among American shoppers, offers an intriguing perspective: it suggests that those who identify as “spenders” tend to experience greater happiness in their lives, while those who align with the “savers” camp are often associated with financial wisdom and prudence.
According to The New York Post, the poll of 2,000 American shoppers found 56% of Americans consider themselves to be “spenders,” splurging for things they really want, while 34% identified themselves as “savers,” who won’t shop until what they want goes on sale or becomes a necessity. Meanwhile, 10% didn’t claim to be either kind of shopper. Perhaps unsurprisingly, spenders were found to spend more money on non-essential items during any given week by nearly double of what savers spend ($621, compared to $348). In turn, savers were found to set aside less of their total income towards non-essential purchases than their spender counterparts (18%, compared to 22%).
The news portal further reported that, compared to savers, spenders were also found to be happier with their relationships (78% and 63%, respectively), work life (78% and 57%, respectively), and personal life (77% and 71%, respectively). Interestingly, spenders were also happier with their financial lives than savers (73% and 56%, respectively).
However, by saving and investing wisely, one can achieve financial independence and reduce their reliance on others or debt. This freedom can improve anyone’s quality of life and reduce stress. The study also supports this notion, indicating that savers might have an advantage in financial management, with only 29% of their total annual income allocated to miscellaneous purchases, compared to spenders who use up 38% of their income.
As per NYT, commissioned by Citizens Pay and conducted by OnePoll, the study also found 59% “often” and “always” think through the financial impact of big purchases before deciding if they’re worth buying. And despite their proclivity for spending, spenders are more likely than average to consider the financial impact of a big purchase (61%).