Deepstash

Financial Personalities

Financial psychology
... 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.
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. Despite their overconfidence, they are prone to be beaten by the markets — and frequent trades mean they often rack up high levels of charges.
Six financial personality types - which one are you?
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.
Six financial personality types - which one are you?
The Social Value Spender
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.
Six financial personality types - which one are you?
The Cash Splasher
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.
Six financial personality types - which one are you?
The Fitbit Financier
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.
Six financial personality types - which one are you?
The Ostrich
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.
Six financial personality types - which one are you?
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 underperform, namely 82%, because they were trading instinctively rather than strategically. Advice : Continue to educate yourself, limit your trades to the amount you could afford to lose and try to act for your long-term financial benefits.
The 5 Financial Personality Types
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 5 Financial Personality Types
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.
The 5 Financial Personality Types
The Saver
The Saver hates taking risks and hesitate about investing, or even spending. Advice : Cash is not a suitable long-term investment. A financial advisor could help you find the right investment approach and the level of risk you are comfortable with.
The 5 Financial Personality Types
The Debtor
They simply spend too much and don’t put much effort into keeping their financial assets in order. Advice : Try to keep track of your expenses on a daily basis; check your bank account more often and don’t allow yourself to borrow too much from your friends.
The 5 Financial Personality Types
Financial personality
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.
What Kind Of Financial Personality Are You? - Money Under 30
Frugal Saver
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.
What Kind Of Financial Personality Are You? - Money Under 30
Financial Sage
How you can improve: You’re probably depriving yourself of something, even if that’s just a cup of coffee now and then. If you're concerned about money, try to make more money by getting a side hustle.
What Kind Of Financial Personality Are You? - Money Under 30
Spendthrift
The Spendthrift has a spend-first mentality. How you can improve: Combining responsibility with a little bit of spending is the key. If you’re sick of seeing dismal savings rates in your bank account, upgrade to a high-yield savings account.
What Kind Of Financial Personality Are You? - Money Under 30
YOLO Spender
YOLO Spenders will spend it all, happily. “Y ou O nly L ive O nce,” they tell themselves. How you can improve: One of the best options for those who overspend is paying yourself first. Put a chunk of money into your savings account every paycheck.
What Kind Of Financial Personality Are You? - Money Under 30
“The Freedom Finder”
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.
4 Major Financial Personalities, & How To Use Yours As A Strength
“The Relationship Protector”
The relationship protector is often family-oriented. If they can support them emotionally and financially, it gives them their sense of achievement at having helped. A relationship protector is far less likely to make spontaneous investments when others depend on them, and their conservative approach to saving prepares them for retirement.
4 Major Financial Personalities, & How To Use Yours As A Strength
“The Opportunity Seeker”
They’re always looking to expand their options, and every financial decision is carefully calculated to maximize growth. The opportunity seeker has to watch out for taking on more risk with business initiatives or investment opportunities. Spending time with a professional to seek a second opinion can help you assess whether the newest opportunity is the best one for you.
4 Major Financial Personalities, & How To Use Yours As A Strength
“The Security Keeper”
If you track every dollar you spend, are a bit of a perfectionist, and always need to know what the plan is, this might just be your financial personality. A security keeper focuses more on the day-to-day than future financial freedom. Seek out sound advice to help you step outside of your financial comfort zone.
4 Major Financial Personalities, & How To Use Yours As A Strength