Have you ever stopped and wondered what type of “spender” you are? (If not, consider yourself lucky. I, for one, feel guilty even buying groceries in this economy, but I digress.)
According to Gretchen Rubin in an article on Slate, there are two main types of buyers: overbuyers and underbuyers. While they’re pretty self-explanatory, these buying types can help you better understand your spending habits. If you lean toward one extreme, you might benefit from finding a middle ground.
In her article, Rubin explains that neither spending personality is particularly productive. Both have their own pros and cons, and striking a healthy balance between the two can help you feel more financially grounded.
What Is an Overbuyer?
As you could probably guess from the name, an overbuyer is someone who overspends without much thought. They might purchase unnecessary items in bulk or buy items that “might come in handy someday.”
“An ‘overbuyer’ is someone who tends to buy more than they realistically need,” Elisabella Ricca, a personal finance and consumer analyst at TopCashback, told VICE. “This can lead to overspending, clutter, and products that end up expiring or going to waste.”
What Is an Underbuyer?
On the other hand, an underbuyer is someone who avoids spending money at all costs, even when it comes to necessary purchases. For example, maybe you wait until you’re all out of shampoo before replacing it; or perhaps you delay your grocery trip until you have absolutely nothing left in the pantry.
“An ‘underbuyer’ is someone who is so frugal that it leads to inconveniences,” says Ricca. “This type of spender may wait to replace essential items until they completely run out.”
How to Strike a Healthy Buying Balance
Neither buying personality is “healthy,” as they’re opposite extremes. While you don’t want to overspend on items you might never use, you also don’t want to deprive yourself of necessities out of fear.
However, this economy can easily turn a healthy spender into an underbuyer. It’s a privilege to afford even the most basic items and care. I mean, my monthly health insurance—which barely even covers routine tests—is like a second rent payment. If you’re falling into the underbuyer category, know you’re not alone.
“In this economy, it’s important to blend a mix of both of these spending personalities,” says Ricca. “Take advantage of sales on items you need and know you’ll use, but don’t buy things simply because they’re on sale.”
“The ideal middle ground is being intentional with your purchases,” she adds. “It can make sense to stock up on non-perishable essentials that make life easier: vitamins, toilet paper, toothpaste, and soap, when they’re on sale. On the other hand, it makes sense to be more selective with discretionary purchases like perfume, tech gadgets, and hair products.”
Budgeting and prioritizing certain purchases over others can also help keep you grounded. For example, if you’re an overbuyer, you might focus your spending money on necessities before purchasing bulk or unnecessary items. And if you’re an underbuyer, you might work through your fear of spending, especially for non-negotiables like healthy food or personal care products.
The post What’s Your Spending Personality? Here’s How to Tell, According to an Expert. appeared first on VICE.
