Utah recently came in last among states for debt. The average household in Utah owes 138% of the annual salary. Why are we in so much debt?
There seems to be two kinds of people, spenders and savers. You have probably noticed friends or family that are good at saving. They are always putting away some of their income for a rainy day. These are the savers.
You also know people who are spenders. They are always thinking of the next thing they want to buy. They are often good at growing businesses and taking risks.
This site says it has to do with how the person thinks. Their view of things determines if they are a spender or a saver:
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.
In my experience, both perspectives can become a problem. I have seen savers who are so careful with their money that they limit their potential. They live with cars and houses that are falling apart so they can save more. It sometimes costs them more to maintain the old stuff than it would to enjoy something new.
On the other hand, spenders can blow all their money frivolously. They keep buying things thinking they will be good if they can just get this one item, but the list never ends. There is always something new to buy.
According to this author, a balance is what we want to achieve. If you can see the big picture and also factor in what is needed at the moment, you are on the right track.
If we are a bunch of spenders here in Utah, maybe a broader perspective could do us some good. Just don’t run out and go into debt to buy every book on the subject.