Discover Your Money Personality: The Saver

Lori DuMars, HR Generalist, epitomizes the classic saver personality. She has a cautious approach to spending and investing. Her lifestyle and financial habits are deeply rooted in principles of frugality and careful money management, learned from her upbringing in a frugal household.

Background and Spending Habits

DuMars' financial journey started in a family where frugality was a way of life. Her mother, a homemaker, instilled in her the value of stretching a dollar. DuMars carries forward these lessons by shopping only for necessities and avoiding debt. “I recommend paying cash for everything, or at least having the cash to back all your purchases as opposed to using credit,” states DuMars. She is conservative, avoiding risks and waste, and loves to shop for a good deal. Because of these frugal money strategies, she and her husband are now able to spend a bit more freely.

Motivations for Saving

Her motivation to save stems from a desire for financial security and being prepared for life's uncertainties. Early in her marriage, she and her husband took a Dave Ramsey course where they learned the importance of planning for unexpected events like an illness or job loss, car and home repairs, and simply ensuring they don’t live paycheck to paycheck. “Financial security also helps me avoid stress,” she confesses.

Saving Strategies

1. Financial Guidance
   • Upon marriage, DuMars and her husband set up a consultation with a financial advisor. This guidance helps maintain a balanced and informed approach to financial decisions.
2. Automated Savings
   • She utilizes automatic transfers to send money into different funds, such as a vacation fund, an emergency fund, and a tax fund.
3. Tracking Savings
   • DuMars uses the Quicken financial app for manual tracking, setting aside money for specific bills, and creating budgets with Excel spreadsheets. This system allows her to search, itemize, and chart expenses efficiently.

 Balancing Savings and Enjoyment

Despite her frugal nature, DuMars enjoys life with her family while living within her means. One method she recommends is to have a fund specifically for vacation and entertainment, so that way, you can enjoy everything guilt-free. “When our kids were little, we were still able to take vacations because I planned economical excursions,” she explains. She says they chose activities like hiking and going to the park while limiting meals out at restaurants. They were allotted a certain number of restaurant-prepared meals each trip. They shopped for groceries at a local market and cooked meals in their rented condo or suite. “Buying groceries instead of eating out every meal can save a lot of money,” she says.

Adjusting to Financial Changes

DuMars is no stranger to unexpected expenses. She follows Dave Ramsey's principle of maintaining a $1,000 emergency fund, which she has used multiple times for car repairs and other unforeseen costs. She believes in having a buffer beyond this amount to alleviate financial stress.

Tips for Aspiring Savers

Here is her practical advice for those looking to adopt a saver mindset:

1. Start Small
   • Automate a small transfer, like $20, into a savings account for a specific goal.
2. Incremental Increases
   • Increase your 401(k) contributions when you receive a raise or bonus.
3. Avoid Instant Gratification
   • Sleep on potential purchases before committing.
4. Thorough Research
   • Research significant purchases and shop around for the best deals.

By following these principles, DuMars continues to navigate her financial journey with security and peace of mind, ensuring she can enjoy life's pleasures without compromising her financial stability.