Hoarders vs. Squanderers: Which One are You?

Spending money can be a VERY touchy subject and is often the source of many arguments within a household.

In fact, of all of the material I’ve read on the subject of marriages, I’ve never seen finances fall below the top 3 reasons for divorce or marital problems. Often, one spouse does all the spending and the other is a cheapskate, hence the money conflicts. But which type of spender is better?

It turns out, neither. When I went through premarital counseling, the one principle I remember most was the concept of Hoarders vs. Squanderers. A Hoarder is someone who refuses to spend money, instead saving all of their money in preparation of loss. Their pride is in their bank account balance, and love to watch it grow to ridiculous numbers. Nothing they own is name-brand, and they will go to great lengths and endure extreme sacrifices to save money, even if it is to their detriment. If you find yourself extreme couponing, living in extremely poor conditions, or only buying the cheapest of products and services even though you have the means to live more comfortably, you just may be a Hoarder.

Squanderers, on the other hand, are often the most obvious and recognizable between the two groups. Squanderers are the high rollers, the big ballers, and those who try to keep up with the Joneses. Spending is a habit, as they burn through money at light speed. Whereas a $1,000 pricetag on a purse or TV may result in a heart attack for a Hoarder, the Squanderer experiences an adrenaline rush. Financial ruin eventually catches up with them, evidenced by foreclosures, maxed-out credit cards, and unpaid debt. If any of these characteristics describe you, you just may be a Squanderer.

Unfotunately, Squanderers receive the most attention, even though Hoarders may have an equally improbable chance at success. For instance, Hoarders are usually extremely conservative; they would be as unlikely as Squanderers to invest in real estate, the stock market, or businesses, but more so for fear of loss. Hoarders are poverty-focused, and may never be successful because in order to be successful, there has to be some risk of failure or loss. Hoarders are only interested in protecting their existing conditions, not creating new avenues of wealth, health, and prosperity.

It is my belief that “you are what you eat”, meaning that whatever you choose focus on, you will become. Personally, I identify more with the Hoarder, so every once in awhile as my finances can afford, I either invest some of my money or spend it on some of my wants. I make sure I don’t go overboard, and I am careful that I don’t add to existing debt unless I can pay it off. These simple tactics keep me in a balance between Hoarding and Squandering, while also keeping me on the path to success.

So which one are you most like? Are you a Hoarder or a Squanderer?