We all have different ways in which we manage our money, but did you know that your money personality can impact whether you maximise your finances or cause you to bleed financially?
Knowing your money personality and how you can navigate your way around making your money work for you to match it can be life-changing. Here is what you need to know.
The big spender
Big spenders are people who are not scared to dig deep when it comes to splurging in the latest tech gadgets, an upgrade to a better car and branded clothing.
They are also more likely to take on risks when it comes to investing because they can afford to and don't stress over debt. These are people that other people are influenced by and try to emulate their lifestyle.
While you may be able to afford things with ease, doing this can cause you to miss out on opportunities that can maximise your money. If not monitored, you could end up biting off more than what you bargained for which can push you into a compromising position financially. Remember to keep track of your finances and weigh up your options before putting your money on it.
At some point, you may have hit rock bottom or know of someone close to you who did, and the anxiety of not having a safety net has made you save every cent you have. You are more concerned about the future and the thought of retiring with not enough money to cover your expenses leaves you with sweaty palms.
You are constantly adapting your savings plan to make sure that you have all your basis covered. You know how to make your finances stretch without putting a strain on yourself.
While this safe approach to your finances is a great way to make sure that you are prepared for whatever life may throw at you financially, be careful not to miss out on the fun parts of life. Remember to treat yourself and loved ones to what’s within your budget.
You are someone who believes in making their money work for you, which is a good start. Having a passive income is the goal, because why work and earn money when you can earn money while you sleep?
You probably have a set budget, and the calculator app on your phone is something that you frequently use to tally up if you are still on track or not. You have a policy in place such as life cover to protect you and your loved ones.
The last thing you want to do is be caught off-guard with an enormous expense, which is why you plan and research before making any decision. However, look out for sticking to the same regime and policies. Frequently assess if you are still getting value for money and you are set.
The Shopper & The Debtor
Shoppers are on the extreme of the money scales. Your belief in shopping is something that has caused an array of impulse purchases and stepping out of your budget frequently a norm which ultimately wreaks havoc on your finances. Not only does it cause you to spend more than you earn, but it puts you at a high risk of being in debt that could have been avoided.
You may be aware of this issue. Try to focus your efforts on the money you have and sticking to a realistic budget. Another handy tip is to avoid places that will tempt you to go outside of your budget. Seeking financial advice can also help you plan effectively and live within your means.