What’s your financial personality type?

Posted on 11 November, 2019

Whether you’ve got plenty of it—or very little—money is something which can cause a whole lot of angst. But understanding your financial personality type is the first step towards happy finances.

No matter which financial personality type you fall into, the team at Green Associates Financial Planners in Deakin has you covered with some tips on not only how to understand it, but how to make the most of it.

Hey Big Spender

They may earn a little or a lot, but either way, the Big Spender is spending beyond their means.

Known for having a champagne diet on a beer budget, they love a credit card, and are likely have a car loan. And when they do have savings, they don’t tend to last long. While they may be having fun living large now, they don’t have any financial security and tend to live pay to pay.

“The Big Spenders love a splurge, so the key to harnessing this financial personality is not depriving yourself too much,” says Green Associates financial planner Katherine Spitzkowsky.

“I’d suggest budgeting in a planned splurge, so you can still get that fix of spending, but it’s in a controlled way. If this is you, we can work with you to set short term goals and build up your confidence to turn this ship around.”

Wheeler and Dealer

The Wheeler and Dealer loves a bargain. They avoid paying the ‘loyalty tax’ by always ringing around their utilities and insurance companies to get the best deals, and their shop involves multiple supermarkets so they can get the best sales. They’ll even travel further just to get cheaper fuel.

While they don’t overpay for things day-to-day, they can have a tendency to be more frivolous on bigger purchases, which can sometimes undo their hard work.

“People who think they’ve saved money are then more likely to be careless about some of the bigger stuff. They also sometimes buy in bulk just because it’s on sale, even though they may not really need it,” says Green Associates financial planner Taylor Ward.

“We can help them build long term goals which tie into their short term focus. We can also help them make further savings in areas they may not be aware of. For example, tax is the biggest expense for some people, so we can help them find ways to reduce their tax bill.”

Ostrich

Have no idea how much money is in your bank account right now, and often find yourself in that moment of dread when you tap your card wondering whether the transaction will go through? You’re probably an Ostrich. And you’re far from alone.

“The Ostrich is probably the most common financial type we see,” says Green Associates financial planner Trina Wood.

“These people have no clue. They don’t know how much they earn, what’s in their bank account, they have no idea what their mortgage interest rate is, and they’re often the ones who have four super funds.”

While the Ostrich is too busy enjoying life, they’re largely winging it financially, and may be experiencing anxiety about their finances and not know where to start.

“Denial will only get you so far, including with your finances. But we can help empower the Ostrich, and get them in control of things,” says Trina.

“And it doesn’t have to be scary. We can break things into bite-sized, achievable goals and give you the tools to empower you. The only way is up, so anything will help, no matter how small.”

Sensible Sally

Sensible Sallies are always thinking about the future. They pay off more than the minimum repayment on their mortgage and never owe interest on a credit card.

They feel confident in their financial future because they’ve been working hard towards it, but they may be living like pauper day-to-day and missing out on things.

“We know these people are good at hitting goals, but they’re almost too good at the long term stuff, and it’s about finding a balance,” says Taylor.

“We can help them figure out how they can pare back a bit so they can enjoy the now by adding in short term goals, as well as still nailing those long term goals.”

High Roller

The High Roller has a high household income and doesn’t think twice about spending it. They buy the best of everything, and their ‘she’ll be right attitude’ means they wouldn’t think twice about shouting someone a meal.

“Even if they get themselves into trouble financially, they know they get another big salary in a fortnight. So they are living beyond their means, but they know they’ll come out of it because they’ve got such a high income,” says Trina.

“But they may be overconfident about their situation, not thinking about what they’d do if they all of a sudden didn’t have that income or if their debt gets out of control.”

Trina says the High Roller has the greatest power to make positive changes and quickly—it’s just about a mindset change.

“We can help them find the balance between enjoying now and maintaining their existing lifestyle for a long time while also ensuring their future self is secure,” says Trina.

the essentials

What: Green Associates
Where: 3/10 Geils Circuit, Deakin
Web: greenassociates.com.au

This editorial was created in partnership with Green Associates. For more information on sponsored editorials, click here.