Skip to content

6 Types of Spenders in the World


Did you know there are 6 different types of spenders in this world? Do you have any idea which type you are? I can’t say I really ever sat down and thought about the various types of spenders until just recently, but your future very much depends on how you spend and with what mentality you do it with! Can you identify which type of spender you are?

1) Spend What You Don’t Have….On Necessities

We all know that there are people in this world that spend money that they do not have. They load up their credit cards and do not plan to pay off the balance at the end of the month. This category is for those that are spending their future money (that they didn’t earn yet) on necessities! In other words, they are in a position where they cannot afford food, clothing, or shelter and are forced to get by with credit cards and cash advances.

This is obviously a dangerous spot to be in. If you are in this category of spending, you are already poor, and if you do not earn some additional income, you will become bankrupt very soon. Take a look at my free eBook, 101 Ways to Make More Money if you need some ideas, and do it soon!

2) Spend What You Don’t Have….On Luxuries

I define luxuries as non-necessities. Anything that you don’t absolutely need to survive (basically food, clothes, and shelter) lands in this category. So, if you’re buying non-necessities on credit that you know you won’t be able to pay for by the end of the month (when that credit card statement comes due), then you fit into this category #2.

If you have a car payment, furniture on a 0% interest program for 60 days, or a large credit card bill and it can’t be paid right now, then you are officially spending money that you do not have! Sure, you can make all of the payment now, but what if something happened to your job? You would no longer be able to make those payments and all of your stuff would go right back to the bank. That means that you suddenly have no car, no furniture, and a large bill to pay your credit card company!

Your financial appearance could change in a matter of minutes! This is obviously very dangerous, and if you are here, I strongly suggest that you work to get yourself out of debt, and out of this category!

3) Spend All of What You Do Have….On Necessities

If you land in this category, that means that you’re not living lavishly by any means. You haven’t taken on a load of debt, but you are still living from paycheck to paycheck. I commend you for basically being debt-free, but this is still not a great position to be in. If just one factor changes in your life, you could begin to plummet into the downward spiral of debt.

Do your best to create multiple forms of income. Not only will it add to your overall income, but it will diversity your source of income, and therefore make yourself less vulnerable to those unforeseen changes in your future life.

4) Spend All of What You Do Have….On Luxuries

I’d say that most people land in category #2, but if they believe in living free from debt, but still like to spend, then they often find themselves in this category. Sure, you might not be in debt, but you are blowing all of your money on the present and not thinking about the future at all! Most of the assets that you purchase are depreciating in value each year (cars, boats, restaurants, clothing, etc.), so after years of making a solid income, you have absolutely nothing to show for it.

If you would invest just 10% of your income at the beginning of your career, you could have fun AND you could amass over a million dollars over the course of your life!

5) Spend Only After Delayed Gratification….On Necessities

If you think about it, this category is only for the mentally deranged. This is where people have plenty of money to buy their necessities, but they choose to deprive themselves of it until they reach a goal of some sort. For example, maybe this person sets a goal to increase their income to $100k per year, and until they do it, they decide not to buy any new clothes, even if they have holes in their socks and tears in their shirt! They are obviously serious about amassing wealth, but this probably isn’t a healthy way to go.

6) Spend Only After Delayed Gratification ….On Luxuries

This is the absolute best category to be in if you’re looking to build wealth for your future! Let’s say you walk into a store and you’ve got $400 in your pocket. You notice that there’s a sale going on in the furniture outlet and there’s a couch there that’s absolutely gorgeous! The best part is, it’s only $350, so you could pay cash for it right now! Many people would jump on that purchase and tell everyone about the great deal they got for years to come, but not you.

You realize that you have a perfectly good couch at home already that will probably serve its purpose for 5 more years. Replacing it now would be a waste of money. Plus, there will always be a deal on furniture in the future. This is not the last time that you’ll ever see a great deal.

This category is full of wealthy people. They do not spend on emotion or purchase something just because they have the cash for it. Rather than tie up their money in a depreciating asset, they decide to invest it into Index Funds or a business venture which yields even more income for the future. Money is most easily created with money. If you have none, you’re setting yourself up for failure in the future.

So which category are you in? Hopefully we’re all in #6 or striving to get there!



My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. I approached this article with a bit of skepticism, thinking that classifying all spenders into 6 types was a bit of an oversimplification, but I must give credit where it is due – you nailed it.

    Very good article. This was a pleasure to read.

    • It just kind of came to me all of the sudden, but yes, all of the spender types are covered here! Thanks for the compliment!

  2. Good post on the different types of spenders. I’m hoping that I am in the #6 category or at least working hard towards it. It is very difficult to practice delayed gratification, but if we really want to have a stable future then it is something that we really need to practice.

    • I hope that we’re all in category #6, but realistically, there are many of us that are in the other 5. Delayed gratification is a pretty tough thing to practice.

  3. Haha, well I am obviously one of those who spend what they don’t have on luxuries. I am that silly, that I can apply to a few cash advance loans online stores in order to purchase one pair of very expensive shoes and yes I know there is nothing to be proud of. At least I am not a number four spender which makes my case easier. This is a very good post and I got to take a look at myself from this point of view. Cannot say that I am satisfied

    • Best of luck to you Cassy! It’s great that you realize where you are, and more importantly, it sounds like you know where you want to go as well!

  4. It was really difficult to categorized myself in one category as I can be listed in 3 categories.

    1. Spend What You Don’t Have….On Necessities
    2. Spend All of What You Do Have….On Necessities
    3. Spend Only After Delayed Gratification….On Necessities

    • Wow, that’s quite a broad spectrum of categories Shawn! Which one would you say you land in most often?

  5. 2. Spend All of What You Do Have….On Necessities

    • Do you plan on changing your spending style Shawn? Do you have a plan to make more money?

  6. I think we’re in the “mentally deranged” category! We didn’t eat meat or buy cheese for a YEAR while we were paying off our first and only mortgage. Actually, we didn’t do a lot of things but we had a ton of fun! And you know what? It only took us 13 months to pay off that mortgage. Since then, we’ve built our debt-free dream house and we’re planning to retire around 45. It feels good to be mentally deranged. 🙂 HAHA!
    Loved the article, Derek! I’ll be linking to it.

    • Boom.

      You. Sound. Awesome.

      Congrats on the debt-freedom and the fun you’ve had along the way! Oh, and let me know when you link to the post – I’d love to read it and leave a comment!!

Comments are closed for this article!

Related posts