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What’s Your “Money Personality”?

What does money mean to you? How do you make financial decisions? We all relate to money differently and that’s dependent on a number of factors, including our upbringing, social circles, earnings and living standard. Understanding your relationship with money is the important first step to examining your own financial habits and will help you shape your approach to spending, saving and investing. So which “money personality” are you? Let’s look at some of the key character types. The Spender Big homes, flashy cars, new gadgets, brand-name clothing, fancy restaurants, first-class flights… appearance is everything! The Spender is a status seeker who equates extravagant possessions with self-worth. Forget keeping up the Joneses, they ARE the Joneses. The Spender wants to make a statement — “look at me!” — whether they can afford it or not. They’re comfortable spending money, don't fear debt and often take big risks when investing. The Saver They turn off the lights when leaving a room; sneak their own popcorn into movies; and put away money “for a rainy day”. For The Saver, money is a means to future security. They’re conservative by nature, generally have no debts and don't take big risks with their investments. The Saver takes pride in saving rather than spending, and rarely makes purchases with credit cards - they aren’t concerned about following the latest trends. The Shopaholic “Shop ‘till you drop!” The Shopaholic considers shopping an art form and NEVER returns empty-handed. They revel in the sense of excitement that can accompany a shopping spree. In fact, they often can't resist spending money, purchasing items they may not need. Unfortunately, The Shopaholic can be overwhelmed by feelings of guilt and anxiety once they get home with their new goodies. And this can set off a nasty cycle that sends them right back to the mall. The Bargain Hunter Finding a bargain isn’t simply about being a smart shopper – it’s about the thrill of the chase! For the Bargain Hunter, getting a good deal is a victory, regardless of whether they actually need the purchased product or service. Oftentimes, they don’t even care about the item they’re buying, as long as they can buy it cheaply. Sale signs make The Bargain Hunter’s heart race and they get a kick out of haggling with sellers, talking them down from their original price. The Investor Careful decision-making and calculated risks in the pursuit of monetary goals - that’s The Investor’s creed. Even if it means losing everything, the entrepreneurial type is willing to go out on a financial limb on occasion. The Investor is acutely aware of money, understands their financial situation and puts their earnings to work. Regardless of their current economic standing, they look forward to the day when investments provide sufficient income to cover their living expenses. The Avoider “Retirement? Superannuation? That’s too far away to worry about!” The Avoider takes a “see no evil, hear no evil” approach to money matters. Like the proverbial ostrich, they prefer to bury their head in the sand than create financial plans for a more financially secure future. The Avoider isn’t comfortable thinking or talking about money due to their lack of understanding or interest. Alas, they might not even know how much is in their bank account.