If you’ve been scrolling through social media lately, you might have seen an array of quizzes offering to tell you everything from which X-Men character you are to what continent you should live on based on what sort of burgers you like.
Many of us love to indulge in the somewhat frivolous fun of putting ourselves into these boxes – and sometimes finding out about a bit more about our friends and family in the process!
But while you might have worked out your breakfast food personality or which ‘80s club banger best represents your life, have you thought about a more serious topic: Your money personality?
Psychologists say there are a number of major money personality types and identifying yours can help you get ahead financially.
Serious savers
Some of us are just natural-born savers, who put money away from the minute we start earning it, even if there is no clear goal in mind.
Sometimes this comes from a drive to feel secure: you value the safety that a good emergency fund gives you.
Finding saving easy is a great innate skill to have, but it’s also important to make sure that you aren’t missing out on things you enjoy. If you have a partner with a different view on money, you may need a strategy to balance your different financial styles.
The live for today-ers
In the same way that some people are born savers, there are people who seem to be hardwired to spend. Sometimes it comes from a place of generosity, wanting to treat the people you love to everything you can afford. However, this sort of spending can stop you getting to your goals and, if you don’t keep an eye on it, you could end up with a lot of expensive debt.
Try to create a budget and see if you can work out where your drive to spend is coming from – can you find ways to enjoy yourself and treat your friends without spending so much money? Are you spending because you’re prioritising your short-term goals over your long-term ones?
The entrepreneur
Do you often think of new ways to increase your income? Some people have an entrepreneurial drive that is inherent. They might be starting a new business, working as many hours as possible, or running several side hustles on top of a full-time job.
This can be a great attitude to have when you’re starting out in life and trying to build your wealth. It’s likely that over time you’ll end up financially better off if you’re always on the lookout for the next opportunity. But it can also be easy to lose your sense of work-life balance and forget that there’s more to life than work and earning money. So, take time to enjoy it and make sure you have time “off” the grind.
The financial yo-yo dieters
If you splash out on a big purchase then feel guilty and immediately go on to a stringent savings plan, you may be on a financial yo-yo diet.
This can be a problem because a financial yo-yo diet is probably as ineffective as a food one. You’re much better off if you can plan your purchases, save for them and then spend comfortably, knowing you can afford it. This might take a bit more discipline and planning but it’s much more sustainable long-term.
The she’ll be right-ers
Do you just kind of ignore what’s going on in your bank account and assume everything will work out for the best?
Many people who take a “she’ll be right” attitude towards money do so because they don’t want to spend too much time thinking about it. But even if things are going okay for you, it can be a good idea to know what’s coming in and going out of your bank account and why. And if things aren’t always looking so healthy, you can still take action.
The worriers
On the opposite end of the spectrum from the ‘she’ll be right-ers’ are money worriers. If they are not worrying about bills to pay, they worry about the performance of their investments or whether they are saving enough for some unseen future emergency.
Some element of concern about finances is good – it helps to be prepared and planning for long-term goals is extremely valuable. But worrying too much can be counterproductive, especially if it means you take less risk than you can afford to in your investing life.
Sometimes, having a plan can help you feel on top of things, and remove a lot of money-related stress. And we can help you have just that.
Want to chat?
Whatever your financial personality, we are here and ready to help you reach your financial goals. We can help you work out how your own unique approach to money can be used to help you power ahead.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
