I am frugal. But given the devil-may-care way I spent prior to immersing myself in personal finance books and then deciding to change the way I thought about money for good, I believe I was born a spender.
Every now and then, I still get the urge to go on mindless spending sprees, but my desire to never rue the day I wipe out my bank account is what stops me from giving in.
And if I dare be truthful now, that is one of those things I am afraid of. Or maybe it is the fact that I have kids, and that I want to officially retire 10 or 15 years from now. Yes, God willing, I want to retire young.
Spender or saver?
A 2011 Time Magazine article reported that a person’s spending or saving habits are genetically predisposed. Meaning, whether you’re a saver or a spender is something that’s been genetically wired into you.
This is according to a study conducted by University of Washington’s Stephan Siegel and Claremont McKenna College’s Henrik Cronqvist. The two experts studied the money habits of a total of 15,000 Swedish twins and discovered the same patterns even in those who no longer have contact with each other.
The study went on to say that while parenting and a person’s experiences in life have an impact, especially in the spending or saving habits of twenty-somethings, when a person reaches middle age, generally, by the age of 40, parental influence and acquired money behavior recede to nil and genetic predispositions take over.
Does it matter?
Now, if you’re reasonable, this shouldn’t give you a reason to spend and mindlessly spend to the point of no return. If you ask me, in this economy we’re in, mind over matter rules.
As in the case of the Warrior Gene, violence, even when it’s genetically imbibed in a human being, can be overcome by the right training and proper education.
- If you think you’re born a spender, the only way to combat the sin of mindless spending is financial literacy.
- Know what you need to know. Read books on financial education. I recommend Robert Kiyosaki’s Rich Dad, Poor Dad, Napoleon Hill’s Think and Grow Rich, Barbara Stanny’s Prince Charming Isn’t Coming, Bo Sanchez’s books on personal finance and so many others you can get from your nearest bookstore. There might even be free e-books or audio books you can download from the Internet.
- Monitor your spending habits. Record what goes in and what goes out.
If we resolve to do all these, predisposed to spend or not, at the end of the day, we can rightfully say, we triumphed over nature, that is, our very own human nature.
Image courtesy of Stuart Miles / FreeDigitalPhotos.net
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You’ve recommended some great books on financialy literacy! Great article for people who were “born to spend” !
thanks for sharing!
~ Jupiter Jim
Hi, Jim, thanks for dropping by. Yes, that includes me, too. I am a born spender until I learned to curb the urge to spend and spend.
philosophical thought – Were You Born to Spend or Save. But I love the topic
You’re right. I guess a person will only know if he’s a spender or a saver once he decides to take a long and hard look at the way he relates with money.
Exactly said. Everyone should think deeply about himself, spiritual thought
I agree with you, Ahsan. To change our money philosophy for the better involves transcending deeply ingrained cultural and philosophical beliefs. Nice to see you here!
I must say, I don’t really quite agree with the fact that our ability to spend or save is already wired in our genes. I’ve seen and come across people who run themselves down in huge debt because of their spending habits yet have parents that are extremely frugal, and vice versa. Spending and saving are both habits, meaning that we learn them over time, and we can change if we so choose to do so. Our parents can influence us with how they deal with money, but it still boils down to our decisions.
Very well said, Adeline. Wired or not, it really doesn’t matter. It’s still our decisions that define who we really are. Thanks for visiting!
Genetically predisposed? I just felt doomed. But I got a lifestyle that I would die not to maintain so I might win over the battle of spending too much. I’ve read Rich Dad, Poor Dad; recommended it to a friend while on a holiday in Europe and fancying other places to go to – the very thing that keeps me thinking of ways to save.
I felt the same way when I first read about this study. Then again, genes are something we have no control over. It all boils down to how we lead our financial lives. Rich Dad, Poor Dad is a good read. Highly recommended.
I’m a finance person and very stingy when it comes to managing other people’s money but I’m a spender and as the article shows, its genetics which must be the reason I keep complaining that my mom is also a spender. I do know my limits though like don’t buy anything you can’t afford.
Hi, Franc, thanks for dropping by. We just can’t control what we’re made up of, can we? Still, we can control our actions and our decisions, which are what define us ultimately.
Yes, We have our own sets of impulses but its still our choice to succumb to it.
That’s a nice post really read a article after many days which turned my interest..thanks for the share..
Nice to hear it did pique your interest. Great to see you here, Sinbad!
Spender Saver! I like the sound of that, I’m not a saver kind of person. Now I’ve learn something from this post. Thanks for the share.
I’m glad you learned something, Bam. Thanks for visiting!
I guess its mutual, we need to spend sometimes for our needs 🙂 and we must save some for future use but I had to admit that I am quite a spender :/
You’re right about that, Herbert. Thanks for dropping by!
Informative post. I know I need to enhance my saving habits. I am a spender especially with food and dining out but I try to save at least 20% of my our family income. Sadly, circumstances happen (aka buying PC and/or gadgets) and we have to deduct those with our savings.
Gene, if it’s any help, I recommend you read Kiyosaki’s Rich Dad, Poor Dad. There’s even an audio book out there somewhere. Kiyosaki’s views on assets and liabilities can be a life changer.
spending is in our genes. hmmm, quite obvious on my end. but, the control lies in, how far can we go ?
i guess, spending equates with how much you’re earning.
i’m envious of the books u read. keep it up.
Yes, that was quite a revelation, huh? I didn’t believe it myself at first. But then, the moment I looked further, I can’t deny the fact there’s some truth in it.
Go get yourself some books on personal finance, too, Imriz. They don’t have to be expensive, really.
Thanks for giving us thought regarding financial issues. I am a quite spender, for foods and needed stuffs for the family. Thanks!
Not a problem, Ron. Well, it’s never too late to start saving. 🙂
I’ve been putting off reading Rich Dad, Poor Dad, for quite sometime now.. I should really push myself into reading that and more financial books. I know that I was born a spender. But it was through my upbringing (grew up in a really big family), I eventually learned how to save every penny I had. I know my limits but I know I’ve yet to learn more.
Yes, it helps to read personal finance books. They’re going to teach you a whole lot, I promise.
Impulsive buyer/Splurge spender 😀 And I happen to be at the right place at the right time (70% off sale items) 😀 I really need to be mindful nowadays though so I invested some of the money online 🙂
Congratulations on the investment, Marie! Indeed, it takes a lot of self-control to stay away from malls and the shopping and splurging that go with them. Thanks for dropping by!
I am thankful to my brother who gave me the book of Colayco. It sparked my interest and realization started to sink in. After that, I explored other books. Then when I started to invest, I feel guilty to buy unnecessary things because I know that I can use that amount to increase my investment.
Anyway, it is still a long way to go for me in terms of financial goals.
And like you, I want to retire early..
Indeed, it’s true what they say. Investing in the mind is the first crucial step to financial freedom. Like yourself, I’m not there yet. But like you, as well, I have started investing. Retiring early and enjoying the fruits of my labor while I still have to strength to explore the world around me and do things I never dared to do before is my ultimate goal.