What’s Your ‘Financial Personality’

Sky — Thu, 04 Jun 2009 00:34:51 +0000

Financial personality refers to ones’ approach to spend or save money, which indicates ones’ financial strengths and weaknesses. Finding out your financial personality could help one find the best financial approach.
According to researches, five different approaches to the way of handling money have been marked out.
1. A whopping 59.3% of British people are classed as financial ‘amblers’, the type who drift through life not worrying about bank balances until reality (or bankruptcy) hits.
2. The next biggest group, for 24.6% or one in four Britons, are the financial ‘evaders’. This type of people avoid opening their bank statements and live in denial about the size of their debts.
3. One in seven—13.7% are the ‘hoarders’ who keep a steady stash of cash but live in fear of things going wrong. Their anxiety leads them to stick to ’safe’ investment options which bring them little return. But they may stand a better chance of financial survival, as long as they make the most of their money.
4. Then there are the flashy 2% who spend to impress others. Known as ‘validators’, they splash out to show off or simply make themselves feel better.
5. Only a tiny percentage or 0.4% could be described as true ’splurgers’, those who can’t help impulse buying on their credit cards to the point of financial ruin.
Awareness of one’s financial personality type is the first step toward taking control. Once people have worked out their own financial personality, it is time to embark on a little financial improvement. Sometimes people may have to fight against their own instincts. The second step to financial sanity is to make up a budget plan, listing the monthly income and spending.

BGN Entrepreneur » true ’splurgers’

What’s Your ‘Financial Personality’