You probably have an inkling if you’re good with money or not. You know if you’re good at saving, if you research how to manage your money, or if you still have room for improvement.
Whatever vague idea you currently have, taking the time to work out your money habits can help you see how you view personal finances more clearly. And it can be hard to improve yourself until you know yourself.
Once you’ve worked out your money habits, consider taking a look at ASIC’s MoneySmart website or get free help from the National Debt Helpline to help you make the most of your finances. And let’s be honest, we all have room to improve our habits.
Scroll on down to see which of the seven main money personalities best fits your habits, based on research ANZ conducted into attitudes to money. I feel like I’m mostly frugal as heck with a dash of leaving it for future me to deal with.
1. Independent Investors
Wealth can give the owner a certain freedom and the Independent Investors know it. They’re motivated by having enough money to be the master of their own life. That’s why they tend to save and invest from early on in their lives and gain the knowledge and understanding to be able to do so in a well-planned manner.
Signs you’re likely to be an Independent Investor include:
- You know how much you’ll save next month.
- You’ve already worked out how old you’ll be when you retire.
- You check your Super regularly.
- You read the financial pages and talk about investments like it ain’t no thang.
- You use phrases like ‘passive income’.
2. Traditional Money Managers
This lot still tend to make well-planned financial decisions, but they do so from a traditional standpoint. They might stick to lower risk investments, try to save for a home as early as possible in their lives or stay focused on building savings for the future. It’s all about security and being prepared.
Signs you’re likely to be a Traditional Saver include:
- You’ve been saving for a house since you started working.
- You always save money for the future.
- You tend to put your money into a savings account or term deposit, or maybe even an investment property after researching all your options
3. Frugal As Heck
This is that person who can tell their mates exactly how much cheaper it is to make brekkie at home instead of going out for brunch. They live very carefully, taking note of all the saving hacks they read. Their money motivation is often about having a financial cushion as protection and survival, just in case the unexpected happens. This attitude may leave them with decent savings.
Signs you’re likely to be a Frugal As Heck include:
- You have a strict budget and plan exactly where your money goes.
- You’re THE champion of finding amazing deals for everything.
- You save as much money as you can but you stress that it’s not enough.
- You look for ways to avoid unnecessary debt and always research the best options.
4. She’ll Be Right
This lot pretty much do what it says on the tin. They’re chill, and carefree. They truly love life’s simple pleasures, from a beach day, to fishing, and sport which means they’re odten able to build up a modest savings account even while they are enjoying themselves. It’s real Hakuna Matata living.
Signs you’re likely to be a She’ll Be Right person include:
- You don’t have a budget but you also don’t really go into debt unless totally necessary.
- You have lots of hobbies but they don’t put much of a dent in your wallet.
- The best things in life are free or cheap, and you know it – you get to spend more time with mates in your own community that way anyway.
- Money isn’t something you stress about.
5. Impulsive Spenders
This group may actually be earning a decent amount, but their financial stress might not make it feel that way. Where does the stress come from? Often because they can’t resist a good ‘treat yoself’ splurge. They might feel the need to keep up with the trends or socialise with all their peeps, which is not cheap.
Signs you’re likely to be an Impulsive Spender include:
- You rarely pay your credit card off in full.
- You take out a lot of personal loans or rack up credit card debt for things like new cars and holidays instead of saving for them.
- Investing sounds like a great idea, but you haven’t actually done anything about it.
- You have a lot of hobbies that require you to spend money.
6. Sometimes Indulgers
Much like the Independent Investors, this group is lucky enough to enjoy an income that keeps them financially comfortable, but they generally aren’t as financially responsible with their money. They’d rather spend now than save for later. They enjoy luxury and the status they perceive to come with it so they’ll try to keep up with the trends and spend money on material possessions.
Signs you’re likely to be a Sometimes Indulger include:
- Your shed is full of the latest sports gear you’ve barely used, or you have a wardrobe with all the tags still on.
- You eat out more than most people your age.
- You don’t just buy a car, you sign up for the optional upgrades and a bigger engine.
- You don’t spend everything you earn, but there’s no budget and you might not have a clear financial plan.
7. Future You’s Issue
The cost of living can be expensive, and this group tends not to have a well-planned budget so they kind of just stop thinking about it and hope for the best. They might be trying to escape the pressure by ignoring any money responsibilities.
As a result, this group can often find themselves in money-related stress. If any of this is sounding familiar, it might be time to change some financial habits and seek advice from a financial counsellor. You can find free help from the Aussie Government here.
Signs you’re likely to be a Future You’s Issue include:
- You live paycheck to paycheck.
- You often use your credit card for regular daily expenses and rarely pay it off in full.
- You don’t spend time trying understanding finance, it’s just not that interesting to you.
- You don’t plan for the future.
This article was sponsored by ANZ, AFSL and Australian Credit Licence No. 234527 but it sure wasn’t written by them. Always speak to the experts before making financial choices, ok?