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7 money personalities

Written by on . Posted in Financial Behaviour. No Comments on 7 money personalities

Are you the friend that shouts more than what you can afford, or the one that’s happy with a handout because no one knows struggle street like you do?

When it comes to money and people’s behaviour, you may have a few labels or preferred ways of describing those nearest and dearest to you – and surprise surprise, they may do for you too.

I mean, how many times have you heard someone say so-and-so is stingy, or a show pony, or was born with a silver spoon in their mouth, or on the flip side, too generous for their own good?

If it’s something you’ve been thinking about, we’ve listed some common money personalities that may shed some light on where change, or consistency, may be of benefit to you.

Which personality type are you?

1. The scrooge

Generosity is not your strong suit and whether or not there’s a reason for it, you don’t like giving and you don’t like spending, unless maybe it’s on someone else’s credit card.

You might be under the assumption you’re doing it tougher than everyone else (whether that’s true or not) and may tend to favour people in your life who are financially beneficial to you, even if you’re a financial burden on them.

2. The gambler

You spend more than what you can afford and then spend the rest of the time trying to make ends meet. Whether it’s on the races, high-risk investments, designer labels or anything that drains you of cash, you tend to operate under a cloud of secrecy.

These behaviours can often be damaging to you and those around you due to a lack of financial security. If you do need assistance, the Gambling Helpline is available on 1800 858 858

3. The show pony

You buy only the best clothes, phones, accessories and even things you’ll never use as a status symbol. You host parties on your credit card and generally prioritise possessions over all else.

You’re more than likely racking up some debt in order to keep up with the Joneses, while you probably know a lot of scrooges who are more than happy to take whatever it is you’re willing to give.

4. The spoiled

You’re happy to sit back and relax as you’ve got your parents, a partner or an income coming from somewhere that ensures you’re able to live the lifestyle you’ve become accustomed to.

The situation however is probably stunting your ambition to do things for yourself, which may create issues down the track should no one be there to do it for you.

5. The enabler

You’re probably quite sensible when it comes to spending. You may even have quite a lot of cash stashed away which you’ve cautiously saved over the years. Your downfall however is associating with those who are often spoiled or scrooges – those who function on the back of your hard work.

You give them money and you even loan them money that you know they’ll never pay back. They resist being money smart because they know you’ll always have their back. And, despite the fact you may think you’re helping, you’re more than likely hindering their ability to help themselves.

6. The mentor

You’re often seen as the sensible one and your success generally comes down to hard work and not necessarily the biggest pay cheque.

You’ve always had a budget in place to ensure you live within your means. You pay your bills on time. You save for the future. You compare your providers every 12 months. And, you’ve even got a little left over to put toward the fun stuff.

7. The free spirit

You probably identify with a number of money personalities to a degree. Some days you’re a scrooge because you have to be, sometimes you’re a show pony when you’ve got cash to blow, and sometimes you lend money to people you shouldn’t.

You know you have the potential to be a mentor but you’re a bit of a procrastinator and not a massive fan of hard work. However, you’ve often wondered what financial success you could have if you did spend an afternoon sorting out your finances and mapping out things to do on your bucket list.

Knowing which personality or personalities you resonate with when it comes to money could help you to make better decisions around the way you spend and save, and potentially work with others.

 

Need a hand with your money matters?

For more help and strategies on identifying your money personality, speak to your financial planner at SFP. Or if you don’t have a planner yet book an appointment, contact us on 02 9328 0876.

 

Article by © AMP Life Limited. First published July 2018

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

 

5 habits to become financially secure

5 habits to become financially secure

Written by Sydney Financial Planning on . Posted in Financial Strategies. No Comments on 5 habits to become financially secure

5 habits to become financially secure

Believe it or not, being secure financially doesn’t involve magic or an outrageous stroke of luck.

More often than not, it results from good habits, such as keeping track of your finances, cutting back on expenses, and planning ahead.

Here are five habits you can develop

That will help you become the awe of your friends and family!

1

Set Goals

It’s time to take control of your financial security and a great place to start is to identify short, medium, and long-term financial goals.

These might be saving for a family holiday, making additional contributions to your superannuation, paying off expensive credit card debt, or just keep it simple and save a set amount each pay-day.

 

2

Regular check-ups

Creating a budget is an incredibly important step to achieving your goals as you work towards your financial security.

Rest assured it’s easier than you think using a good budgeting tool. And there are plenty of helpful apps and websites out there to choose from. We tested a few and liked the simplicity of ASIC’s MoneySmart Budget planner.

  • Calculate your household’s monthly income: Look at your payslips or bank statements to see how much is going into your account on an average month.
  • Tally your monthly expenses: Check your bank statements, bills, and receipts to see how much you’re spending. Don’t forget to factor in the big ticket items you purchase less often.
  • Remember your goals: Make an allowance to put some of your income aside to achieve your goals. Can you afford to save 20% of your income or do you start a bit lower?
  • Crunch the numbers: You’ll now have a summary of how much you’re saving, or losing each month. Don’t forget to save a copy.
  • Find saving measures: Boost your savings, identify and cut back on unnecessary expenses. That might include take-away coffee, restaurants, or subscription services you rarely use.

The first few months of sticking to your budget will be the toughest, so start by setting a realistic budget. Sticking to consistent saving will mean that you can build up an amount that can be used for a significant goal, like paying off a car loan, or saving a deposit for your first home.

 

3

Optimise your bank accounts

Give your saving efforts a big boost with the checklist below:

  • Streamline banking – Get paid into an account that’s not accessible by debit card. Pay off your monthly essentials first, such as rent and utilities, then transfer your budgeted savings into a separate account.
    Finally, only put as much as you’ll need in a spending account. That’s this month’s budget.
  • Bank fees – How much are fees eating into your savings and spending accounts? If you don’t know, find out, then shop around for a better deal.
  • Credit cards – Tackle your outstanding credit card balance, check to see if you own any credit cards you no longer need. The sooner you can stop using them and pay off the balance the sooner you will have extra money to put towards your goals. Remember late payment fees and interest can really put a dent into your savings.

 

4

Track your spending

You need to keep your eye on the ball at all times. That’s because it’s one thing to create a budget and set financial goals, but entirely another to stick to them.

So set aside 15-30 minutes each week or fortnight to make sure you’re keeping on track. This regular review is also a good opportunity to identify any expenses you don’t really need. Your streamlined bank accounts should
make this very simple to track your progress.

Notice the spring in your step if you’ve stuck to your budget and saved towards your goals. Remember how good that feels!

 

5

Plan for the unexpected

Your income is fundamental to achieving your financial goals, so for financial security, you should be confident that you have adequate protection in place.

Ask yourself how quickly you would burn through your savings if you were unable to work for three to five months? Or even longer?

By having different types of insurance you can help protect yourself and your family when you need it the most.

Taking out the right cover for you means that you can be confident that if something unexpected did occur, your efforts to become financially secure are protected.

 

 

Would you like to explore options to help meet your financial goals?

Connect with one of our planners to review your current financial position, either book a virtual meeting or call us on 02 9328 0876.

 

 

Article by Sydney Financial Planning

 

General Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.

Photo by Fuu J on Unsplash