Are you aware of the different money personalities? Ever wondered what your money personality is and what it means for your bank account? For the festive period, we have decided to look at the different type of money personalities to help you identify yours so that you can learn more about the pros and cons of each personality type and gain control of your money management habits.
The Avoider often finds themselves getting into debt as they ignore anything to do with managing their money and spending habits. This is due to being overwhelmed about the financial terms and habits that come with being cautious on spending. This personality type does not keep tabs on the where, what and the how’s of their money.
Are you an Avoider?
Do you often close your eyes and hope that everything in your bank account will work out for the best? Do you wait until the last minute to do your taxes, pay your bills, borrow money, and avoid any financial statements? These habits are key indicators of an Avoider. This personality type is often shy of making any decisions about their finances and become uncomfortable to discuss money. Therefore, the concept of investing for an Avoider is far too complicated.
Unlike a “Big Spender”, which is different to an Avoider, Avoiders do not buy things to make a social statement or make themselves feel good. As they do are not controlled by money either, they do not let finances rule their lives.
- An Avoider may be able to manage their debt from time to time, however in the long run, it is likely that they may experience an unexpected expenses, which could lead to a financial crisis for the Avoider.
- There are missed opportunities in securing a stable financial future, as the habits of an Avoider is one who spends more than they earn, borrowing money, and keeping no record of finances.
What can you do if you have identified as an Avoider?
- To better understand, not watching your diet and not watching your finances are remarkably similar. By indulging on a continuous basis, you wake up one day and realize that you have gained more weight than you thought. At this point, to get back into shape is more of a struggle than it would have been, had you been conscious of your actions all along.
- Your perception of money can be rectified by making small changes, which will be beneficial for your mind and wallet. Our advice for an Avoider would be to try to pay off their debt before they start saving or investing. Once that is under control, they can be introduced to investing.
- Automating investments and savings is the best way to control your finances without doing the heavy lifting. Thinking about your future, such as retirement planning will do you good.
- Keeping a budget can help you track exactly how much you spend and where you spend it, which will help you identify obstacles and figure out where changes can be made.
- Finally, increase your financial literacy. This will help relieve some of that money anxiety and make money topics seem less daunting.
Our financial experts have been unpacking and providing practical advice on the best ways to preserve your financial freedom. Contact our financial advisors to ensure that you are receiving shariah compliant finance advise.
Anglowealth is an Authorized Financial Service Provider (FSP Number: 46755)