Why are some of us natural savers, while others are spenders? In a way, it’s a matter of perspective.
The main difference is that savers take in the big picture, while spenders only see things as they are, or as they appear to be at that moment in time.
We say savers tend to have an Encompassing Perception, where spenders are more focused on their Perception of Detail.
To understand this concept, let me give you a practical example:
Couples generally earn a set salary each month. The broad thinker will say: “Life isn’t over today, and it won’t be over tomorrow. Therefore, it’s a wise idea to save some money for the children’s education, for retirement, and for other future needs.”
This person is a saver who views life in an encompassing manner. He or she tries to earmark funds to provide for present needs, and for life in the future, whether that future is ten, twenty, or even forty years away.
The saver with an Encompassing Perception will not frivolously buy something today because they know they have to save for the future. When winter is approaching, he is not willing to buy the latest style coat, because he needs the money for the future. He would rather use his older style coat than to buy a new one.
On the other hand, a person whose thinking is more tuned to the details is more likely to focus on the present. If it would be more stylish to have a new coat, this person will pay for the new coat, disregarding future needs and expenses in that moment of decision.
It’s common for these detailed thinkers to have more debt, and insufficient savings. Some are even unable to make ends meet, despite having a healthy income.
How can a Personal Financial Trainer Help?
In order to live a balanced financial life, a person needs change their detailed view, and become more adept at seeing the broader picture.
Making such a fundamental change, however, is difficult to do alone. Often it takes ongoing, professional support to make this change. A professional, however, can help you to slowly change your perception, and find a balance between the two mindsets. With their ongoing support, you’ll get the help you need to make it through to your new way of doing things, and to make those changes stick.