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 Big Spender
Living in the moment, making purchases for personal satisfaction and being a firm believer in “treating yourself” is the definition of “The Big Spender”.
Are you a Big Spender?
If your purchases are planned on your gut feeling, and you tend to buy the trendiest items in the market, you are prone to waste your money and fall into debt. On the other hand, a Big Spender does not break the bank, they rather enjoy buying items that make them feel good, instead of saving a larger amount towards an investment goal. When it comes to investing, Big Spenders usually choose riskier funds.
The Pros:
Big Spenders enjoy reminding others that life is short and to live in the moment is key, showcasing their freedom of which most of us can aspire to. This personality type is great at spending money on items that bring them joy, of which other personality types may struggle with, such as Money Hoarders.
The Cons:
This type of spender is not the best at planning their financial future, which is a price they pay for living in the moment. This results in not knowing what comes next. As mentioned previously, Big Spenders are more likely to invest in riskier funds, resulting in their investments not doing as well as other good and steady investments. Additionally, the result of big purchases, leaves them with a small savings pocket.
Become a smart Big Spender:
- By limiting your spending, you will find yourself moving towards a brighter financial future. A tip: create a monthly budget to ensure that your money is being distributed towards your necessities, with room to add the remainder to your savings.
- Opt for longer term funds that can serve you well in 10+ years to achieve mid- to long-term goals.
- Whenever you feel the impulse to buy a luxury item, write it down and give it a few days. By then you should forget about wanting the item.
- Keep an expense diary to help you keep track of purchases. Evaluate them regularly so you could see if they added real value to your life. Weekly allowances will help you limit spending and avoiding triggers like online shopping websites and malls will go a long way too.
- Seeking long term value is an important consideration with any purchase. Do not let the rush of buying a new watch overpower the ability to grow your money.
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.
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