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Six financial personality types - which one are you?
The Anxious Investor
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.
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SIMILAR ARTICLES & IDEAS:
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Key Ideas
The Investor
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 Spender
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
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.
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Key Ideas
The Slow And The Fast Way To Build Wealth
- The long-term approach to wealth building: If you’re younger and your income limits allow, open up a Roth IRA. Invest in mutual funds and ETFs while making sure you have enoug...
9 Ways To Building Wealth Fast
- Save on vehicles. Before buying a car, investigate vehicle reliability, pricing and financing.
- Rent. Most rentals offer more flexibility in case you need to move. Also, not having the mortgage payment allows you to start saving earlier.
- Don’t be a consumerist, buy only the things you really need.
- Save a percentage of your income so you have more money to invest.
- Work hard on your current work regardless of your feelings for it. It’s easier than finding a new great opportunity and may lead you into a promotion.
- Educate yourself even if it doesn’t bring any immediate benefit, being educated opens new opportunities on the long run.
- Invest in yourself and your marketing to open up new opportunities.
- Being an entrepreneur is the best way to maximize your earnings, short of being an investor. Try it, even if it fails the learning from it will be invaluable in your next attempt.
- Real estate won’t make you rich overnight, but it’s a solid strategy to increasing your network.
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Key Ideas
Financial Personalities
There are five different types of financial personalities, each of them having their own set of values and outlook towards money:
- The Big Spenders: The ones who place a high val...
Saving Tips For All Types
After you have figured out your financial personality, here are a few tips to save money:
- Big Spenders need to consider fun alternatives to the high-purchases with things that cost little but bring real quality and happiness and lead to savings.
- Savers need to start living their lives, and not live in misery in the present, just for some future security.
- Shoppers need to recognise the emotions and value in saving money for their future, like a dream home.
- Debtors need to put some money in automatic saving funds to build their savings.
- Investors would do great in future, but can also make do with some purchases in the present, striking a balance.