YOUR MONEY PERSONALITY
WHAT’S YOURS? THE ANSWER COULD HELP YOU BUILD YOUR BANK BALANCE
Do you see money as simply a tool to get you from A to B? Or is money central to your personal identity? Becoming financially self-aware is the starting point to financial freedom. And that means getting to know a side of yourself you may not have considered before – your money personality.
THE SAVER
Savers wait until items are discounted before making a purchase and always aim to pay with cash rather than credit.
However, Savers aren’t comfortable taking on higher-risk investments. The issue for Savers is the security of having physical money impedes their ability to grow their funds over time as savings are eroded by inflation.
THE SPENDER
Spenders enjoy the latest of everything. This costs money, which leaves Spenders facing solid debt.
To break the cycle, make a simple budget with small steps added over time. This helps rein in those spending urges and puts more money into your bank account.
You don’t have to go cold turkey. Part of enjoying your money is having the ability to choose what you use it on.
THE DEBTOR
Debtor personalities continually spend more than they earn. That means using borrowings to sustain spending, which is a very dangerous spiral.
Most money experts agree the first step in breaking the debt cycle is to understand what drives you to overspend.
The key is bringing your debt under control and improving your ability to set aside extra cash for savings – and, from there, getting started with investing.
THE INVESTOR
Investors have a clear picture of their financial situation, and tend to spend less than they earn, save the difference and invest those savings.
Investors like putting their money to work to match their goals. They tend to be well-off and have a high level of financial choice and freedom.
However, some Investors can become Debtors very quickly if they overleverage themselves or become overconfident, leading to poor investment decisions.
THE IGNORER
These types ignore their personal finances and plead ignorance about any problems that result. One factor for this behaviour can be anxiety about making decisions.
First step for an Ignorer is to move on from your fears and engage with your finances. Start simple and find out where your money is going.
CAN I CHANGE MY MONEY PERSONALITY?
If your approach to money is holding back your financial wellbeing, set some goals or a money roadmap. With patience, you can alter your money personality – the rewards can bring financial freedom.