Blog

What is your Financial Personality?

Share: |
Share on linkedin
Share on twitter
Share on facebook
Share on email

When it comes to managing your finances, are you more likely to be impulsive and positive or stick to a formal plan?  Understanding your financial personality can be important on the journey to reaching your financial goals, whether it’s something short-term like buying a home or longer term like your dream retirement.  For some of us it’s simply about finding a better balance between spending and saving.  

According to Charles Schwab about 43 percent of Americans are “Dreamers” when it comes to their finances – they tend to live in the moment but can also feel unprepared for certain life events.

Only 10 percent are considered financial “Architects” – they not only imagine the future but take pen to paper and map out a plan to make it a reality.  Other personality types include Improvisers (18 percent), Organizers (11 percent), Mavericks (10 percent) and Philosophers (8 percent).

What are your personality traits?

  • Savers: Those who save now so they can enjoy their money later. Savers are debt averse; they pay off their mortgage early.
  • Spenders: People who want to enjoy their money now and worry about the future later. They don’t save much and tend to borrow.
  • Sharers: Those who want to share their money with family, friends, charities or their community.

Recognizing all these characteristics may help you understand why they make the financial decisions they do.

Here are some key themes to help determine your money personality and provide tips to help you achieve your goals:

  • Is juggling your monthly bills a breeze or a tornado?
  • Do you set goals or go with the flow?
  • Are you an engaged investor or a sideline saver?

Click here to take a money personality quiz and learn more about your money personality and tips and tricks to help reach your financial goals.

Once you’re invested, it’s important to stay engaged to stay on track.  Keep an eye on your investment fees and make sure to rebalance about once a year. It’s about understanding who you are, how you can get where you want to go and having a plan to get there.  

Topics