FOLLOW 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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FOLLOW Six financial personality types - which one are you?
Do you have a friend who always insists on picking up the bill at social gatherings? Their extreme generosity may not stem from huge wealth, but from status anxiety. Or are you the sort of person who obsessively checks their bank balance or investment portfolio?
... 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.
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.
Despite their overconfidence, they are prone to be beaten by the markets — and frequent trades mean they often rack up high levels of charges.
The Hoarder 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.
FOLLOW FOLLOW The 30-Day Rule
One can develop healthy spending habits and avoid wasting money by using the simple 30-day rule:
Whenever there is an urge to spend on something, just wait for 30 days.
One can buy...
The Emotional Component of A Purchase Marketers capitalize on the emotional component of any purchase while working hard towards ensuring consumers make ‘impulse’ purchases both online and offline. Many people purchase due to their need for emotional fulfilment, indulging in shopping therapy and incurring credit card debt. This leads to random, unused stuff lying in the house, which is not really needed. When Everything Is On Sale
Most stores use the ‘SALE’ marketing gimmick (both online and offline) so that we can splurge our money now, instead of waiting.
The system is gamed for us to spend our money wherever we go. We need to stop wondering where our money went and start telling it where to go. Deepstash is better on the app. Discover new ideas and get inspired daily. GET THE APP SIGN IN