MONEY MOVES TO MAKE
Money magazine’s Effie Zahos identifies the four main financial personality types
The recently released Financial Planning Association of Australia’s Live the Dream 2017 report identified four main financial personality types. Here, Delma Newton, a certified financial planner at Total Portfolio Management, talks us through the four profiles and offers some sound advice on how to turn our fortunes around. Which one are you? THE DAYDREAMERS
Traits: You love to dream about your future but often struggle to act on any plans. You’re always stressed about your finances because you’re not too sure what exactly you want. Thirty-two per cent of Australians are Daydreamers, 55 per cent of which are female.
How to improve your money health: Dreaming is good, but you need a more concrete plan. Start small, pick one thing that is important to you, write this goal down and stick it on your fridge or mirror. A financial planner can help you set some goals and give you guidance and direction on achieving them.
Traits: You know what you want in life. You dream big, and you’re prepared to act on your plans. Your biggest struggle is finding the resources to help you reach your goals. Go-getters make up one-third of the population. How to improve your money health: You have the dream and know what the end goal is, but how do you get there? Work out the first step. For example, “I will save $5000 by the end of 2019.” Broken down, this means you’ll need to save $210 per month for 24 months. Now you can research the best way to do this and where to invest your $210 per month. It always helps to have a starting point.
Traits: You prefer to spend your time enjoying life rather than worrying about the future. As a result, you’re not good at sticking to plans, but you’d like to do better. Nineteen per cent of us are Cruisers. How to improve your money health: It’s usually a crisis that spurs you into action, but it’s worthwhile taking stock of your situation now. Write down your assets, debts, income and expenses to get a better idea of what you have to work with.
Traits: You prefer to act immediately, often without any further thinking. You don’t spend time dreaming about the future, preferring to focus on here and now. You’re not too stressed about your financial future. Sixteen per cent of Australians are Builders, of which 46 per cent are women.
How to improve your money health: You’re the ones the rest of us marvel at and wonder, “How did they get that?” For you it’s almost automatic, with a little bit of money going to savings each pay. Try and get this up to a minimum of 10 per cent; anything on top of that is a bonus, and 20 per cent is awesome. A great financial guide for you is George Clason’s The Richest Man in Babylon.R