I’ve been a super-saver ever since I was a kid. I would save up my monthly allowance because you never knew what would happen tomorrow. I was a very pessimistic kid, I admit. On the other hand, my big brother would spend all his money on games, toys, and whatever else caught his eye. And he would come to me to borrow some money to buy more games. Mind you, this was when I was still an elementary school kid. I should’ve charged some interest, seriously.
I was a natural-born saver. And I’m grateful because I didn’t have to work too hard to get to where I am now. I was diligent, but I never felt like I had to desperately fight the temptation to spend money on luxuries.
My lifestyle hasn’t changed much since I first started working when my annual income was around $60,000. I make more than double that amount, plus I am married, so that means we’re saving lots of money each month.
Looking back now, these are the mindsets that helped me save up $1M before 40 without feeling deprived.
Introverted
Introverts are great savers. I am a huge introvert. I don’t like partying and I don’t like hanging out with people. I like staying home, reading books, drawing, and playing games. Even with my good friends, I don’t need to see them every week. Honestly, I think I can live for another million years without seeing anyone other than my dog and my partner. I’m about as introverted as a hermit crab.
We introverts are great savers because we don’t feel the need to go out every night and be around people. When you have lots of friends, every weekend can turn into trips to cafes, restaurants, bowling alleys, and laser tag (I assume that’s what people do with friends. Hell if I know).
My brother loves hanging out with people, and he used to go out to play paintball, buy expensive guitars for his band, and do what all the cool kids do. As I said in the beginning, he hasn’t been saving much. I can’t wait to drop the news about my early retirement plan to him.
If you’re an extrovert, don’t try to force yourself to become an introvert, because you can’t. That is impossible, just like it would be impossible for me to become fun and outgoing. Being an introvert definitely makes saving a lot easier, so if you’re an extrovert, you may need a little more discipline. You need to be comfortable saying no to invites.
Spending for Necessity, Not for Identity
This is not about some stoic idea of “only spending on basic needs and investing everything else”. But you do need to ask yourself, “Am I buying this because it will make me happy, or am I buying this because I want to show off? “
Some people buy nice cars and nice houses just because they can afford them and want to present themselves as successful. But do those things actually bring you joy? Do those shiny new bags give you a sense of fulfillment? Or are you just building a facade? Because if you’re spending on things just to impress your friends and family, that isn’t a great use of your money.
I get it, I was also in a phase where I really wanted a high-end luxury watch. But as I was searching for watches, I started to realize that none of those watches were attractive to me, besides their brand names.
Then I started looking at lower-end but still high-quality watches. And I immediately fell in love with a Citizen automatic watch, which was 1/10th or even 1/100th of what luxury watches would cost. But I was so happy when it arrived because it was the perfect color and the perfect size. It’s still my go-to watch when I go out with friends on rare occasions.
Whenever you feel the urge to buy something, ask yourself, “Does it make my life better?” Or, if you’ve ever watched Marie Kondo, “Does it spark joy?” If it does, great! You should consider it a necessity because necessity doesn’t always mean basic needs. Something can be a necessity if it adds meaningful happiness to your life. But if you are buying something just to impress your friends, that’s a sign you’re buying it for identity, not necessity.
Overly Analytical
Every day, you make decisions. Even when you buy laundry detergent, you compare the unit price, read the reviews, and choose from five different scents. Having many choices means you need to spend time researching. And if you never feel decision fatigue when you buy something, maybe you are not giving enough thought to how you spend your money.
Being overanalytical has its downsides, but when it comes to saving money, it can be a great trait. Overanalytical people don’t want to fail. They want to make informed decisions, make the best purchase possible, and feel confident before committing.
This trait helps because you don’t spontaneously buy things. You sit on it until you are absolutely sure that you need it. You will spend less on trivial things, and more importantly, you will experience less buyer’s remorse!
To Summarize…
Some people are natural savers because of how they think and how they view money. But even if you’re not a natural-born saver, you can still improve the way you spend money.
These are the rules and mindsets that I naturally follow:
- Socializing is great, but don’t let that distract you from your financial goal
- Only buy things that matter to you
- Be deliberate when you buy
Finally, I’ll leave you with a song I live by.
