I’m not the most savvy when it comes to personal finances. I’d love to be the woman who saved $36,000 by never spending $5, but that just sounds
Or, more specially, I’m an ‘avoider’, which is a ‘money personality type’ that I share with one-fifth of the population but, between us, we only hold 9 per cent of personal wealth. A depressing thought, but at least I’m not alone.
Money makes me anxious. I don’t want to control it. I don’t even want to know about it. But I also know I need to change that – see the never-ending rabbit hole that is my financial anxiety?
So why don’t I just fix it? I could – but that kind of change is not going to come naturally.
Mark Bouris, executive chairman of wealth management company Yellow Brick Road, has profiled six ‘money personality types’ to help us better understand our strengths and weaknesses (or, in my case, purely weaknesses) when it comes to dealing with money.
His argument is that, by better understanding your values, motivations and reasons for spending and saving money, you’re more likely to be successful in managing your finances.
Which one are you?
These are the types that make me cringe. Not in a bad way, in a wish-I-had-a-10th-of-your-smarts way. These are the people who regularly engage with financial planning, expect to retire early and are confident in their decisions. There’s a reason why they’re confident too – they’re usually always right. They’re practical and educate themselves on all things finance-related. Stocks, investments, self-managed super funds (yes, self manged – they manage their own super!), enthusiasts are right across all these money-making mysteries.
Only around 14% of the population is composed of Enthusiasts, but the infuriating bunch posssess around one-third of Australia’s entire personal wealth.
These are only slight-less irritating than enthusiasts, but the’re still going to be rich. They have a similar financial awareness and confidence when it comes to personal wealth, but they’re not so savvy. Instead, they regularly seek advice from experts to manage their wealth (yes, they have welath to manage!). Delegators make up around 19% of the population and hold around 18% of private wealth.