The psychology of saving

1. The Saver

This person is a bargain hunter. They love a good deal and don't like to spend money without assessing the purchase first. It's important for them to learn the costs of any venture upfront and to feel like they're getting ongoing value for their investments.

Top strength: A mentality of dedicated saving is very valuable and pays off handsomely in time.
Top weakness: Investing is a long-term game. In their attempt to save the most at any given time, Savers may chop and change to investments that sound better, instead of staying invested throughout market fluctuations and long enough to yield results.

2. The Spender

This person loves to spend money on themselves and on those they love. Their mindset is that money is meant to be spent because life is too short not to enjoy what they have.

Top strength: Spenders understand that wealth is meant to be used and they are able to accomplish life goals with it.
Top weakness: Spenders often do not save enough (or they may start investing too late) to fund all their goals and their retirement.

3. The Security Seeker

This person is risk-averse and very cautious about how they spend their money. They are planners and researchers, who keep their eyes on the future. The thought of not having enough can cause anxiety and may lead to overly cautious investing.

Top strength: Their desire for security often means they are consistent and disciplined investors, which is rewarded in the long run.
Top weakness: They tend to stick to what they know and not make necessary changes to keep up with inflation.

4. The Risk-taker

This person believes that taking risks pays off in the end. They tend to feel that they have to take big risks to reap big rewards. They're generally optimists and idealists who are not afraid of a more aggressive investing strategy. They believe 'you have to spend money to make money' and 'go big or go home!'.

Top strength: They're open to new opportunities and can potentially earn strong returns over time through well-placed investments.
Top weakness: They may be too quick to act impulsively when something sounds exciting, without doing due diligence first - which may lead to losing capital that they can never get back.

5. The Flyer

This person is not interested in their money or how to make it last. They often live hand-to-mouth or use credit extensively; they don't check their statements and are not informed about how to sustain or grow their wealth. They make no attempt to empower themselves and are happy to leave financial decisions to someone else.

Top strength: Even if they don't feel inclined to manage their finances themselves, Flyers who delegate smartly - for example, by hiring and listening to a professional financial adviser early on - may be rewarded for that trust in time.
Top weakness: They don't have a good idea of what their financial standing is, and so are caught off guard (and potentially can face financial ruin) if they haven't adapted their lifestyle or developed investing habits to fund their futures.

Do you see yourself in one of the personality types listed here? It's good to be self-aware when it comes to your financial personality. That way, you can identify your strengths and weaknesses in finance. Then you can learn how to make wise decisions about your money and avoid making emotional choices or other common investing mistakes.