Improve your finances in 2022
For some people, reviewing their finances is something they do at the start of every year. For others, January can be a financial hangover as we get out of holiday mode and assess the full impact of Christmas spending; so February is when financial strains begin to arise. This is when you decide if you are set out to recuperate your finances in 2022 or make the same mistake as previous years. Improve your finances in the coming year by identifying your money mindset and having a savings plan curated for you accordingly.
Get in touch with a Create and Protect financial adviser for a personalized fiscal plan to put your money on the right track.
Types of money mindsets
Recent research has found that ‘money mindsets’ help in identifying how you think, feel and behave about spending and saving money. Simply put, money mindsets can be broken down into 4 types but can co-exist within the same person who might exhibit several types of behavior towards money.
Dollar-stretchers are highly conscious of how money is spent, are strong budgeters, feel anxious about finances, and spend income only on essentials with no room for non-essentials.
Goal-driven savers are highly purpose-oriented, motivated to increase incomes and uses tax returns to boost savings, reluctant to commit to long-term saving goals like house deposits, and unlikely to reach financial goals without a savings buffer.
Impulse spenders live for the moment, love having different experiences and don’t like thinking long-term. They are highly desire-driven when it comes to spending, likely to spend on luxuries/non-essentials instead of important bills, likely to depend on bonuses and tax returns to repay debts, and likely to be driven by the desire of gratification and self-reward. Habitual savers love saving money and getting satisfaction, safety and security from watching it grow. Such individuals spend prudently and love to bargain, might be short of daily expenses, have an investment strategy, and look into finance books.
Regardless of your outlook on money spending and saving, there is always a strategy to help you reach your financial goals; and we're here to assist you so don’t hesitate to call us.
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