Yes, a financial personality is a thing! And it has a major influence on how we navigate our finances
As the mid-year draws closer, it’s the perfect time to reflect on the first few months of 2022. While it’s great to look back on the new year’s resolutions you’ve been able to tick off, it’s worthwhile also checking in on your finances. Were you able to stick to your money goals, or did it all go up in flames due to your spending habits? Either way, your personality may have something to do with it. It’s true! Your personality not only impacts things such as your relationships, your job and what you like to do in your free time. There is also something called ‘financial personality’, and understanding yours may help you deal with money better and stick to your saving goals. We’ve listed four financial personalities. Which one (or ones) do you see yourself in?
If you get a kick out of transferring money into a savings account – more so than you do when you buy that pair of shoes that is trending – chances are that you have a saver personality. More often than not, the saver is someone who does everything in their midst to tighten the belt on expenses (this may include things such as turning off the geyser or switching off unnecessary lights). They are bargain hunters who thrive on sales.While we root for saving money for a rainy day, it’s important not to take frugality too far by skipping outings with loved ones or eating foods you don’t enjoy. Don’t miss out on life. Allow yourself some spending money each month – you don’t have to go overboard.
On the opposite side of the spectrum, we have the spender personality type. These are the people who would much rather go on a shopping spree or spoil their loved ones than fret about a budget. You’ll regularly spot them driving the nicest car, wearing name-brand clothing or walking around with the latest cellphone on the market. They can be quite impulsive when it comes to spending money. As you can imagine, it’s easy for spenders to end up in troublesome predicaments when it comes to finances. That’s why drawing up a budget is highly recommended. Ensure that you spend money on the necessary things before you click ‘checkout’ or head on your next splurge session – and do them only if truly have money to spend. Automatic transfers into a savings account is also a good idea. Do not touch your savings except for when it’s needed in an emergency situation.
Are you someone who makes an effort to see your money grow in order to secure your future? If you answered yes, you most likely have an investor personality. These people spend a chunk of their money on investments to eventually reach a point in their life where their money has grown so that they can live comfortably with little to no worries about finances. Investors like to stay up to date on the various markets and the risks associated with making an investment. While investing is a great move towards financial stability, at times, investors and savers may find themselves in the same boat by holding on to their money too tightly. Ensure that you’ve put out money for yourself to be able to enjoy life every now and then, too.
The difference between savers and debtors is that the latter spends more than they afford, and ends up making use of loans and credit cards, or borrows money from friends and family. This could be either due to the fact that they don’t earn enough or because they give little thought to how much they spend. Debt is the end result…It’s important to make sure that you will be able to pay the money back before making a loan or credit purchase. And budgeting is key to taking control of your finances. Take a close look at your income and see where you can cut back to avoid drowning in debt.
Words by Bianca Muller