What kind of money type are you?

Posted in: Finance

What kind of person are you when it comes to money? Do you avoid opening every bank statement that comes through the door or do you spend hours online pouring over your shares?

Most of us will fall into one of these three main money type categories. Which one are you?

Leave well alone

You tend to bury your head in the sand. You’re one of those people who’d rather go to the dentist than open up their bank statement. You’ve no idea what your pension is doing (if you have one!) and as for your current account balance – it’s always a bit of a mystery.

Think about it but don’t understand

You do worry about money from time to time but you’re not a forward planner and don’t really understand things like pensions, annuities and ISAs. You generally successfully manage to put savings worries well to the back of your mind!

Get really involved – you might save a fortune

You really worry about money and go to great lengths to make sure you’re using it wisely. You have a good pension and may even be shopping around for an annuity. You regularly change your utility suppliers and pay off your credit card bill every month.

Time to change?

If you fit into one of the first two types, there are some good reasons you might want to think again. Burying your head in the sand is never a good idea. Not paying attention to things like interest rates can end up costing a fortune in the long run. And with government changes to things like pensions and taxes, it’s increasingly important to start planning ahead.

  • Try these tips on how to get into some good money habits:
  • Set up a monthly direct debit to your credit card
  • Set up another direct debit to your savings account!
  • Shop around for things like pensions annuities, loans and utility providers
  • Find out about any company pension scheme
  • Look into using your tax-free savings allowance

Making small savings

Making little changes to your spending habits can also make a big difference. You might like to try some of the tips below.

  • Make a shopping list and avoid impulse purchases
  • Use leftovers for lunch during the week
  • Walk to work instead of using your car
  • Switch appliances off rather than leaving them on standby
  • Host a clothes swap party with your friends instead of buying new ones
  • Use the library and swap books rather than buying new ones

Note: Whilst we take care to ensure Hub content is accurate at the time of publication, individual circumstances can differ so please don’t rely on it when making financial decisions. OneFamily do not provide advice so it may be worth speaking to an independent financial adviser about your own circumstances.