Know Your Financial Personality

You may or may not know your distinct financial personality in full until you learn more about the different types, but it’s certain you know what makes you most and least comfortable about money, savings, investments and risk. No matter how long you’ve been involved in handling and worrying about your money, you can always get to know more about exactly what makes your financial personality tick.

Conservative

You may enjoy holding on to a dollar when it comes along more than most people. When you receive your paycheck, you probably pay all of your bills on time such as the mortgage, insurances, credit card debt and car payments. This is-perfectly fine. If you’re conservative, your savings and investment vehicles most likely consist of low returning financial products such as checking accounts, savings accounts, money market funds, certificates of deposits, and some low yielding bonds.

This isn’t a bad portfolio to have but it does mean you may not be be getting huge, long term growth in the years to come. But if it makes you feel safe and secure, then you should probably stick with these investments. If the stock market, real estate, and the thought of launching your own business makes your hairs stand on their ends, then you indeed have a conservative financial personality.

Risk Taker

If you’re heavily invested in individual stocks, mutual funds, junk bonds, futures, options, and even precious metals such as gold, silver and platinum, then you probably have an aggressive, risk taking financial personality. You most likely thrive and delight on financial volatility. You enjoy the thought or actual involvement in launching your own businesses and you have high expectations that all of your business ventures will be extremely lucrative.

With a risk taking personality, you could be susceptible to major losses. But they won’t usually deter you from continuing to be very aggressive in your money matters because this is your comfort zone, and that’s perfectly okay.

Short Term Outlook

You may always have on your mind things like going shopping, loading up your credit cards with purchases such as expensive vacations, luxurious furniture, fancy cars every few years, and lots of indulgences in exquisite jewelery. You have a short term outlook because you’re not that comfortable with postponing immediate materialistic gratification. You have a strong, even overwhelming, desire to spend as soon as you get paid, and you tend to put long term goals such as retirement and your children’s education on the back burner.

It’s likely that if you have this type of personality with money that you’re spending more than you should. Most financial experts would agree that you need to be dramatically boosting your savings and conservative investments to prepare for any emergencies and the long haul when you might need large chunks of cash. You might have a look at our article saving for a rainy day.

Long Term Planner

You look at your finances with a long term approach, and this means you enjoy planning for the major expenses in life. You religiously save about ten to fifteen percent of your gross monthly income for things like a house down payment, your kid’s college education, and your long term retirement funding. You’re not one who feels comfortable using his disposable income to frequently go shopping and spending on just anything that immediately catches your eye. You’ve learned to postpone expensive vacations and indulgences like luxury cars and designer clothes and accessories. Your financial comfort zone is thinking decades away and you’re perfectly fine with that.

To you, it’s much more important to have money in your old age than to live extravagantly when you’re young or middle aged. You have no problem at all rarely eating out, rarely buying things to fix up your house, or engaging in any expensive activities such as gambling, world traveling, and living over your means. With your long term financial philosophy, you also most likely will try to teach your children to live this way, for you consider it the only way to live comfortably sand safely with whatever financial resources you possess.

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