INTJ, Type B, Libra, or extrovert - we’ve all heard of the dozens of ways to define our personalities. Whether you’ve taken a quiz to find what kind of dog you would be or you’re seeking more solid information about who you are, there’s an array of ways to define yourself. We’d like to add one more important one to the list: Your financial personality type.
What is a financial personality type? It’s a label that helps you understand how you save, spend, and invest money. And finding your financial persona can help you figure out what you’re doing right with your money and where you may need some work, such as how to better save money or find more helpful ways of getting extra money. Learning your financial personality type can help you change your spending habits, which can be much more useful than discovering you’d be a loyal Labrador Retriever. Keep reading to find your financial persona.
What Kind of Spender and Saver Are You?
How do you spend money? How do you save money? It may seem like there aren’t many ways to label your spending and saving habits but there are quite a few different approaches to take. Take a look at each of these spender and saver types to find which one fits you best.
Brand Loyal Buyer: You know what you like, and that’s quality, not necessarily quantity. No one could call you flashy, but you do have your preferences and will pay more money to have it. Try branching out here and there; you might find a less expensive alternative that suits your needs!
Alternative Buyer: Your philosophy is, why buy new when a used or discounted option is perfectly acceptable? You’ll find a great product - then find it elsewhere for cheaper. That’s smart, but just be careful; sometimes the knockoffs or used buys are not what they seem.
Buy on Sight: When your eyes land on it, you must have it! Your heart leads your purchases, and you don’t mind spending a few dollars to have just what you want. A good practice for you would be to give yourself a cooling off period, maybe a few days, before deciding if you really want what your heart desires.
Forward Saver: You have a future-first mentality, where most of your savings goes towards retirement accounts. You have a 401k, a separate Roth IRA, and may even branch out into other types of investments. Great planning, just don’t be afraid to live in the current moment every now and then!
Bargain Saver: Putting money in your savings account isn’t usually how you save. How you have extra money is by saving when you spend. You’re the true bargain buyer, pocketing your savings for your next cheap buy. It’s great to save money this way, and it’s also great to put it away without buying anything!
Sometimes Saver: You take the approach of “save when you can” and that’s usually when bigger paydays occur, such as your tax return. Consistency is not key with you, but you do put away when the opportunity arises. There’s always a little room in the budget for more savings, especially if you put a set amount aside from your paycheck in the form of automatic deposits into your savings.
How do You Invest?
We’ve covered spending and saving, but another important aspect of your financial personality type has to do with your investment style. How and where you invest your money can tell you a lot about yourself!
Long Haul: When it comes to investments, you only look for the long-term, believing that if you leave your money alone, over time, it will pay off big.
The Bettor: What’s the point of putting money away if you can’t have a little fun? Adventure in your investments is key, so you take the short-term, high-payoff approach.
Feel-Good: If it’s for a good cause, if it will better the world, and if it means something to you, you’re in! You’re the definition of “angel investor” - swooping in to support local, national, and even international companies who make a difference.
Beyond the Box: Whether you mistrust the stock market or just prefer to put your money into a more controllable investment, you look elsewhere to invest. Whether that’s real estate, entrepreneurship, or even your cousin’s new business idea, you want to see where your money goes and have more say in the returns.
How do You Approach Finances?
How do you approach the topic of finances in general? Combining all these different spending, saving, and investment personality types, find what financial persona seems to fit you best.
You plan for big purchases, you avoid overspending, and you generally play it safe. You have a strong rainy-day fund, but it could always be bigger. Sometimes you still get anxiety about money, despite having a good handle on your budget. You’re doing great! Try giving yourself a break every now and then and enjoy the fruits of your labor.
You’re a bettor investor, alternative buyer, and believe that you need to spend in order to make - and save - money. You’re willing to try new products if for no reason other than getting in early before the price goes up. Just remember, gambling doesn’t always pay off, and the extra money you might make or save could end up lost.
When it comes to money, you just don’t want to think about it too much. You buy what you want when you can, and don’t worry too much about the rest. Money can be confusing, and anyway, why worry about the future when there’s plenty to think about now? While it may seem easier to avoid your financial situation, and it’s true you can easily overthink it all, it can actually cause more stress to ignore it than to face it directly.
Both sometimes savers and bargain savers, as well as brand buyers, can fall into this category. Money management and emotional state are closely tied together. The more secure you feel, the more you spend. The more stress you’re experiencing, the more you tuck things away. This see-saw approach to money can sometimes mean you both spend and save too much. While you are knowledgeable about your money, removing emotion from the mix will be your key to success.
How you spend, save, and invest your money tells you what your financial personality type is, including where you’re doing great and where you can make some tweaks. While this isn’t an all-encompassing list, it’s designed to help you discover more about yourself. This can lead to big changes in your approach to money, helping you better spend and save money over the long term. No matter what financial personality type fits you, though, LendNation welcomes everyone for your lending needs, including title loans, installment loans and payday loans. We’re here to help you get the cash you need any time with a title loan, installment loan, or payday loan online or in-store! Contact us today to get started!
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