Personality quizzes claim to do everything from finding you the perfect job to helping you choose a compatible spouse. While a really accurate personality quiz takes a long time to develop and to take, it’s always a good idea to do a simple self-assessment to find out how you handle money. There are five basic money personalities, and knowing which one best describes your behavior can be the first step toward a stronger financial future.
Ready to find out what your money personality is? Choose the description below that is closest to the way you feel about your finances and care for your cash:
Savers are naturally frugal and actually find joy in getting the best deals on everything from groceries to evening gowns. They’re the ones who shop around for weeks or even months before pulling the trigger on a large purchase, and they usually hate spending money on luxurious experiences.
If you’re a saver, congratulations! Your finances are probably in good shape. Just make sure you don’t buy cheap goods that will fall apart within the year — sometimes it’s smarter to make an investment for quality that lasts.
Big spenders are the opposite of savers: They love to flash their cash and tend to feel the whole point of money is to enjoy living life to the fullest. Spenders are the ones who don’t think twice about buying brand new luxury cars and fancy vacations abroad. Spenders tend to live in the moment and want to have a good time while they can.
If you’re a spender with the cash to back up your lifestyle without carrying a balance on your credit cards, go for it! Many Canadians don’t have enough savings in the event of a job loss or other unexpected catastrophe, though, so do make a point to start a regular savings and investment plan before buying things you don’t really need.
Shoppers are the lovechild of the saver and the spender. On one hand, they love to get great deals and tend to view shopping as a big game — think extreme couponers and people who always know when the next sale is. On the other hand, they love their brand new goodies and often buy things they don’t need just because it was on sale.
If you’re a shopper, challenge yourself to put the money you saved by snagging a great deal directly into a savings or investment account instead of using it to buy more stuff. You can also earn even more cash to invest by selling all the items in your closet you don’t actually use anymore.
Debtors live paycheck to paycheck and have serious anxiety about being able to make ends meet. They usually have high balances on their credit cards, empty savings accounts and non-existent retirement savings plans. Debtors may also be depressed about their financial outlook.
If you’re a debtor, seek professional help by consulting with a financial adviser to develop a plan to pay off your bills and get back in the black. Getting control over your finances will pave the way for a brighter future.
Investors care about financial independence and are taking steps to secure their futures. These savvy financial wizards have maxed out their contributions to retirement funds and aren’t afraid to take on a little risk for higher returns. They’re educated about personal finance and keep track of their income meticulously.
Investors are the personality type to emulate! With some tweaks to the way you think about your money, you can incorporate good investing habits into your financial plan and teach yourself to overcome the worst habits of your own personality type. And if you already are an investor, don’t settle for financial autopilot. Instead, keep learning about all the ways your money can work for you.