Deepstash brings you key ideas from the most inspiring articles like this one:
Read more efficiently
Save what inspires you
Save all ideas
... is a somewhat overlooked discipline that occupies the space between psychology and behavioral economics. Advertisers and marketers trying to tempt us to spend money are well aware of it.
If we understand how the financial environment affects us, we can better control our cash instead of being controlled by it, turning us into more rational investors, more successful savers or less impulsive shoppers.
Lovers of risk, anxious investors trade frequently and believe they have the edge over others. Many have absolutely no idea what their returns actually were and only remember their good decisions.
For hoarders, money represents security. They abhor risk and may even stockpile cash that they would probably be better off investing — or even spending.
Find an advisor you feel comfortable with who can discuss the right investment approach — and level of risk — for you.
Does shopping make you happy? Do you frequently buy your loved ones presents “just because” and blow the budget at Christmas and birthdays? You could be a social value spender.
If you are concerned about your spending and borrowing habits you need to study your bills — perhaps with the support of a close friend.
Cash splashers view themselves as generous, but they also use the money to make others think more highly of them.
They are likely to wave their checkbooks about at charity auctions and spend money on things they could easily do without, from expensive cars to club memberships.
They check their online bank balance and track their spending as often as someone training for an extreme sporting event measures their calorie intake, resting heart rate and sleep quality.
Take a step back and look at the bigger picture. A session with a financial planner could help you identify your goals and plan for a less stressful future.
Someone who would rather bury their heads in the sand than organize their finances. “Making no decision always feels easier than the possibility of making the wrong decision.”
Ostriches should take their heads out of the sand — slowly. Set aside an hour a fortnight at first to examine your finances, taking a close look at your income and outgoings, and where being more organized and aware could save you money.
SIMILAR ARTICLES & IDEAS:
People who invest are those who love the risk, trade frequently and have enough confidence to think they will beat the market.
A 2011 study found out that most investors u...
The Big Spenders like to make social statements by having the latest car, clothes, or phones. They use the money for love and attention and are the main representatives of consumerism.
Advice: Think twice before making a purchase and try to filter the things that you really need from those bought by reflex.
The Ostrich is someone who would rather bury their heads in the sand than organize their finances.
Advice: Ostriches should try to take slowly their heads out of the sand. They should try to examine their finances, take a close look at a better saving rate and consider approaching a financial planner.
“Great wealth builders focus on both saving money and earning more.”
Earned income comes from what you "do for a living."
Evaluate your income situation annually.
To ensure that you save enough money, your wants should not exceed your budget.