What your spending says about you

Read in: 2mins, Published On , 06 Sep 2019 By TT Connect

WHAT YOUR SPENDING SAYS ABOUT YOU

Nothing can match the feeling you get when you see your salary credited to your Bank account for the first time. Influenced by your emotions, you probably spent it to your heart’s content. That's a perfectly reasonable way to spend your first salary. But, what about the second, third or even the fourth? Did you spend it in the same way? If so, maybe it is not the joy of landing your first job that made you splurge. Perhaps, it's a pattern.

Take this quiz to find out what kind of spender you are and how you can improve

1. Quick! Without looking, how much money do you have in your wallet right now?
  1. I never keep track.

  2. I think, I have a vague idea.

  3. I know the amount.

2. What do you do with the money you get from your parents or relatives on special occasions?
  1. I splurge.

  2. I buy things that I need.

  3. I spend a little and save most of it.

3. If you had a tiring day and your house is 10 minutes away. How do you travel?
  1. Of course, I take a cab.

  2. I look for a bus or a share auto/taxi.

  3. I walk it up; it's just 10 minutes!

4. If you want to buy the latest phone, what do you do?
  1. I swipe my credit card.

  2. I use savings, probably borrow the balance.

  3. I first save and then buy.

5. You are feeling low. How do you cheer yourself up?
  1. Shopping is the ultimate therapy.

  2. I go for a walk or meet a friend over coffee.

  3. I try and engage myself in work.

Maximum A
You are: An Extravagant and Emotional Spender.
Why: You believe in living life king-size, regardless of your fi nancial condition. You tend not to compromise on your wants. Emotions drive your spending habits.
What to do: Splurge, but splurge for your future! Start different Mutual Fund Systematic Investment Plans (SIPs) for different wants – phone, car or even a house!

Maximum B
You are: A Balanced Spender.
Why: You spend moderately on your wants. You make good use of your money without suppressing your desires.
What to do: Go for investments that balance risks and returns – Hybrid Mutual Funds. Such Funds are a combination of Equity and Debt to give you steady returns and stability at the same time.

Maximum C
You are: A Conservative Spender.
Why: You prioritise your needs and never consider your wants. You are risk averse and keep worrying about the rainy days.
What to do: Use the 50-20-30 rule of budgeting. This way, you will strike a balance between spending, saving and investing.