2. “I Save and then Splurge on Pricey Items”

When one looks at such people at the first go, they seem to appear money wise but it is not so. Such people might even go the extent of giving up their regular needs to procure their pricey items. Another major disadvantage of this type of personality is – they never tend to save a decent portion of their income. This ends up burdening their long-term savings plan, including retirement.

What to Do: If you belong to this category, then mentally prepare yourself to forego certain things. To you – the purchase is an investment but this ends up eating your savings. You can go for lavish spendings, provided you have stocked up your reserve amount. Plus, change your mindset regarding the utility of things. Just because you own something ‘last season,’ it doesn’t equate to your replacing the item. Remember – your life savings will help you during retirement and not material things.