Save or spend – what’s your money personality?

Last updated on 13th December, 2017 at 10:18 am

Do you hide, hoard or hope when it comes to saving? We decode five different saving personalities – and explain how they can affect your financial wellbeing.

The ostrich

Your head is buried in the sand. Somewhere deep inside, you know that if you open your eyes, you’ll be forced to act. The reality of your finances is too much to take on right now. It’s easier to continue on your existing path of spending money as it comes in. Tomorrow will take care of itself, right? The downside: You’re losing massively by not recognising the realities of life. Depending on your age, you may plan to get married, buy a house, raise a couple of kids – and before you know it retirement comes knocking at the door. All these things require large amounts of money that can only really be achieved by saving. Be a winner: You can only improve. It’s time to take your head out of the sand and take action. Make an appointment with a financial adviser to work out a lifelong savings and investment plan.

The bear

You understand the value of saving, although you find it hard to save regularly and you struggle to keep the money saved. You spend like a millionaire one day, and have to live like a student the next. Like a bear, you save up a little for winter; but when summer comes, you splash out, so you never reach your money goals. The downside: You’ll soon lose faith in your ability to build up a stack of money. Spending the little you’ve saved to satisfy short-term dreams will get you nowhere in the long run. Be a winner: Put an end to your erratic ways and set concrete goals; and then get professional advice about how to reach them. This can include devising a money road map detailing what you wish to achieve. Once you’ve done that, be disciplined about sticking to the plan.

The squirrel

For the squirrel, putting food aside for future consumption is a routine. Saving is a habit, and like the bear, you understand the value of putting aside regular money. The downside: Sticking to a mindless routine can mean you lack the imagination to make the best of your nest egg. Your mindset could prevent you from finding new and better ways to let your money grow. Be a winner: You’re well on your way, congratulations! Now take the trouble to shop around. Are you really getting the best deal and the best interest rates? And how can you invest your money for better returns? Ask yourself: will my money be safe?

The bull

You are saving aggressively and doing well. The results speak for themselves. You have a good measure of security and confidence, and have seen how saving works for you. The downside: You may have forgotten that life is there to be lived. Aggressive saving is good, but do you really want to look back one day realising you missed out on loads of fun? Remember to treat yourself from time to time. Positives: You’re in good shape and won’t be caught with an empty purse in times of need.

The dachshund

You’re inventive, creative, curious and easily distracted. You are constantly looking at new ways to make your money grow. The downside: You’ve done too much shopping around to find the best deal. You chop and change between investments, because you fear you might not reap the full benefit of the savings vehicles available. But, making changes too soon and too often – and without the advice of a financial adviser – can cost you dearly. Be careful. Positives: You care about your money and want to see it grow. Careful money management will point you in the right direction and keep you from making short-sighted decisions. By Helen Ueckermann