What determines your money mindset? From your background and formative experiences, to the content you consume and your current day-to-day, it can all have a significant impact on your relationship with your finances.
Start by uncovering your money mindset with our quiz. Then, read on for tips based on your personality that could help you pursue your financial goals.
Money mindset: Carpe diem
You want to spend your money on experiences and treat yourself with special purchases in the moment. You’re not necessarily an over-spender, but you don’t overthink your purchases and might not prioritize saving for the future. Still, you might feel the need to start an emergency fund.
Action plan: While it’s fun to live life to the fullest and lean on your spending account to splurge, it’s also important to set financial goals and keep them in mind for the future. Maybe you dream of owning a home, going on a debt-free honeymoon or saving enough money to retire early. Check out these resources as your next step toward setting and reaching your goals:
Money mindset: Save for a rainy (or sunny) day
You have one clear goal: saving. You believe in the power of certificates of deposits (CDs), your emergency fund is always a top priority and you also probably try to have more than the recommended amount set aside (just in case). You are focused on the future, and may lose sight of the present sometimes, spending mostly on the essentials.
Action plan: You already have a strong savings ethic and robust savings account, so now could be a good time to research if investing fits your money mix. There are a variety of investment account strategies based on your risk appetite and goals.
Start with the resources below so you can decide how to get started on building a portfolio that could work for you and your goals:
Money mindset: Variety is the spice of life
You’re always looking at what’s possible by evaluating an opportunity's potential while keeping the overall risk in mind. Whether you’re just starting out or are a seasoned investor, you always think about the future and how your money could help you pursue your goals.
Action plan: Even though the investment market can be volatile at times and there is always a risk of losing funds when you invest, diversifying your strategies could help you navigate changing market conditions. Not sure how? Working with a wealth advisor can be a good place to start. Otherwise, check out these resources in the meantime:
Money mindset: Eyes on the prize
You’ve worked hard to achieve financial stability, and you have big goals for the wealth you’ve accumulated. Maybe you want to plan a wedding without going into debt or buy a house for the family you know you want to have someday. No matter your goals, getting your savings, budget and investments in order can help you achieve them. Since you likely have the foundation, working with a financial advisor can add another perspective and help put together a financial plan.
Action plan: This money mindset is always thinking about long-term financial goals, and might even be focused on building the next generation’s wealth. Research ways that may help you protect your financial future with these resources:
Money mindset over matter
When it comes to money, one perspective isn’t better than the other — they’re just different. Understanding your money mindset can help you better map out your ideal financial future.
