You might be surprised to know your chance of getting into money troubles isn't just down to how financially savvy you are or how much you have in the bank.
Whilst being happy-go-lucky is great - you might be a little impulsive when it comes to managing your money as you often have a strong desire for a quick escape. Consequently, bigger, long term investment purchases such as getting on the property ladder, never quite seem within your reach. You may also have avoidance issues when it comes to dealing with your finances.
What can I do? Think about what alternative options you have to make your money work harder for you. You should seek unbiased financial education to make sure you’re financially savvy when it comes to managing your finances.
To you, money is love. A way of showing your affection and gaining emotional closeness with others. This may be through buying gifts or organising parties for friends and family. Caring, generous, empathetic - you like to share your wealth. Whether that be a lavish birthday gift or a sentimental souvenir - giving is what makes you feel good. You’re always getting the rounds in at the pub and sneaking off to pay the bill at the restaurant before dessert. You love to put your money towards experiences with loved ones and may find it hard to say “no”.Being kind with your money is wonderful for many reasons, but it does mean you can neglect yourself and spend a little too much on parties and treats for others. Given you are a generous sharer, you may struggle to save money for the future. What can I do? It can be helpful to start setting up monthly goals and budgets or perhaps setting money aside each month if you want to make a big purchase for a loved one. Financial planning is key and will prevent you from getting into too much debt.
To you, money is status. A good measure of what people have achieved in their life is the amount they earn and what items they have. Ambition, drive, high standards - you like to live life in the fast lane - your image and how people perceive you is very important. You get instant gratification from purchasing new items and can’t wait to show these off on Instagram. Some would say you have a penchant for designer labels and like to update your gadgets each year, so you always have the latest model. Of course ambition is great and everyone likes and should treat themselves on occasion, however you may find that you are not always in a position to financially support this lifestyle.
What can I do?
Focus on improving your budgeting skills and sticking to it! Avoid putting too much pressure on yourself to “keep up with the Joneses’” and think about the small changes you can make to increase your financial security.
QUICK TIP: Have a clean of the accounts that you follow on social media and pick ones that teach skills in money management rather than the latest shopping haul.
To you, money is security. You see the importance in being prepared for the unexpected and having savings for that rainy day.
Cautious, organised, forward thinking - fail to prepare, prepare to fail is your mantra! You want to make sure “future you” is taken care of. You’re ahead of the game when it comes to finding the best deal - you love to shop around. Bills due at the end of the month? You know what’s coming (it’s all in a colour-coded spreadsheet, of course!)Although you’re great at nestling your money together and putting away savings - you’re already doing a great job - but you might be so risk averse that you don’t invest any of those savings or grow it. Such behaviours can result in never reaping the benefits of compound interest or achieving long term financial goals.
What can I do? Playing risk with those hard earned savings can be a challenging concept to get your head around - but you don’t want to miss out on growth opportunities. It can be helpful to digest unbiased financial education and resources to help teach you how to invest or how to achieve more with your savings. Focus on secure investment schemes at first, to test the water.
QUICK TIP: Immersing yourself in books and podcasts is a great way of learning from firsthand experience and taking the first steps into the world of investments.
I’d rather save money than spend it.
It is important to have savings, you never know when you may urgently need the money.
With enough money, you can do whatever you want.
The main point of earning money is to feel free and be free.
I am very generous with the people I love.
I often demonstrate my love to people by buying them things.
Money is a really good indicator of a person’s life achievements and success.
The best thing about money is that it means you can influence others.
I'm confident when it comes to managing my money.