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How to save more money, according to your financial personality
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 value in their possessions, and identify their worth with the things they can buy, at any cost.
- The Savers: The conservative spenders who don’t view spending their money as a worthwhile activity. They don’t take big risks on investments, preferring to save.
- The Shoppers: These are the emotional and habitual spenders, always wanting to spend money on things they might not even need.
- The Debtors: These are the unemotional spenders who do not care about how much money they have, usually spending more than they can afford to.
- The Investors: The investors are consciously aware of their finances, and invest with an eye towards the future. They have impeccable spending habits and a good credit score.
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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 value in their possessions, and identify their worth with the things they can buy, at any cost.
- The Savers: The conservative spenders who don’t view spending their money as a worthwhile activity. They don’t take big risks on investments, preferring to save.
- The Shoppers: These are the emotional and habitual spenders, always wanting to spend money on things they might not even need.
- The Debtors: These are the unemotional spenders who do not care about how much money they have, usually spending more than they can afford to.
- The Investors: The investors are consciously aware of their finances, and invest with an eye towards the future. They have impeccable spending habits and a good credit score.
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.
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- Create a Financial Calendar: prevent yourself from forgetting quarterly tax payments and to get credit reports.
- Check Your Interest Rate: Pay off loans, open saving accou...
Budgeting Like a Pro
- Consider an All-Cash Diet, as limiting yourself to physical currency combats overspending.
- Set aside 1 minute a day to check on your financial transactions, to identify problems, track goal progress and set your spending tone.
- Allocate at least 20% of your income to financial priorities like emergency funds, debts and retirement fund.
- Budget about 30% of your income for nonbasic spendings, like entertainment. Abiding by the 30% rule, you can save and splurge at the same time.
How to Get Money Motivated
- Draft a Financial Vision Board, it motivates and helps you to stay on track with your financial goals.
- Set specific financial goals stating the reason, the way, numbers and dates.
- Adopt a spending mantra, a phrase that serves as a rule of thumb for how you spend.
- Love yourself. Taking control of your finances is part of that.
- Make bite-size money goals. Make the bigger ones but also small step goals to get there.
- Don’t be a financial fatalist, and switch to more positive mantras.
- Get your finances and body in shape. The discipline associated with regular exercising translates to managing your money well.
- Appreciate what you have now, instead of being a consumerist.
- Get a Money Buddy. Studies indicate people pick up good habits from friends with similar traits.
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