The freedom finders like to spend on new experiences in the pursuit of “living life to the fullest.”
Try using a budgeting app or immediately allocating a portion of each paycheck into envelopes with designated purposes. Include a travel fund and emergency fund.
Whether you are highly aware of its influence in your daily activities, or you have a nonchalant attitude towards it, money plays a huge role in our lives. As your personality traits substantially affect how you perceive and allocate your budget, scientists described 5 financial personality types.
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.
We all spend, save, and invest differently. That's because we're all inherently different people with different personalities. Knowing your financial personality can help you make a plan to spend more responsibly and come up with a budget that works for you. Today, we've come up with four different personality types.
Being a Frugal Saver means all your money is going towards saving.
How you can improve:
Oversaving won’t make you happy. Spend responsibly.
If you’re not saving, you may also not be investing. Investing allows you to grow your money over time.
Investing doesn’t have to be all about stocks and bonds, you can invest with just a few cents thanks to apps, or you can invest through Robo-advisors who do nearly all the work for you.
Creating a monthly budget is one of the most important aspects of personal finance. A monthly budget can show where you're overspending, where you need to make adjustments, and how far along you are toward reaching your financial goals. We'll show you how to budget painlessly!
No matter how little or how much money you earn, creating a monthly budget is one of the most important aspects of managing your finances. What gets measured gets managed.
The Envelope system is a way to track your variable expenses like food, entertainment, and drinks.
This method, preferably used weekly, allocates a certain amount in each category in labeled envelopes (food, drinks, movies, etc.). Once the envelope is empty, you are done spending in that category.