What’s your money personality?
If someone was to ask you whether you were adventurous, charming, optimistic or witty, you probably have a fair idea how to answer. But have you put much thought into your money personality? The way people perceive and deal with money can generally be split into four main categories – and knowing your money personality can help you get ahead.
Hey, Big Spender
If you’re a spender, you get satisfaction when spending money. You live in the moment, and can’t resist shopping, even if it’s for things you don’t really need. You find it easy to justify those designer jeans, that fancy new fridge, and the latest smartphone.
Tips for spenders:
Set a rule around delaying purchases – next time you spot something tempting in the shops, don’t just pass over your credit card. Vow to wait 48 hours, sleep on it, and re-assess. Undertake a basic budgeting exercise – take a look through your recent bank statements and categorise all your payments. If there’s a category chewing up too much of your hard-earned cash, cut it back, or put it on lockdown for a set period of time.
Savers are the opposite of big spenders. These cautious people get great gratification and satisfaction from saving money. Those with this money personality put money away for a rainy day, and get anxious about spending money on anything other than what’s necessary. They turn the lights off when leaving the room and only shop when necessary. For Saving Sallys, money equals security.
Tips for savers:
Savers are good with money, in a way. But the tendency to stash away any spare money can mean missed opportunities to make the most of money – like investing to make your money go further, or opting for a higher risk Kiwisaver.
Unlike spenders, who spend money to make a statement or to entertain themselves, debtors simply don’t spend time thinking about their money. Debtors spend more than they earn, and generally don’t invest or save.
Tips for debtors:
If you’re going to take on debt, only ever take on as much as you can afford to repay. A responsible lender will only lend so much based on your income and expenses, but it is ultimately up to you to decide how much is too much. It’s always best to avoid pay-day loans – which are easy to get, but can easily end in spiraling debt.
Investors are very aware and conscious of money. They don’t just save, or just spend, their money – they make their money work for them. They often have long-term finance goals and are prepared to take certain risks to get there. You could say they’re the most successful money personality.
Tips for investors:
Sounds like you’ve got this whole finance thing sorted! Keep doing what you’re doing, and keep educating yourself.
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