Money
personality speaks about a person’s money attitude, money instincts and habits.
It is more about knowing yourself on perception about money.
Let
us know about your money habits through the following exercise. In each of the
questions select the options (a,b,c,d) and take the highest number of letter
which appears in your answer and compare it will the answers given below:
Q1.
You Can’t afford a new phone and your old phone works. You will.
a) Tweak
your budget to accommodate it.
b) What
budget? All will work out right.
c) Think
hard before spending the money.
d) Buy
it whether or not you can afford it.
Q2.
You got a Bonus of Rs.1 lakh. You will..
a) Figure
out how to optimize returns.
b) Not
take any hasty decisions.
c) Immediately
put it somewhere safe.
d) Spend
it on things you want
Q3.
What do you do if family member is hospitalized and you need cash ?
a) You
have put aside some money but it may not be enough.
b) Hope
for the best as you don’t know if you have enough saved.
c) Not
worry because you have saved for emergencies and also have health cover .
d) Borrow
because you never have enough.
Q4.
Your friend wants to borrow money from you. You will..
a) Not
mind lending at a good interest rate.
b) Not
be sure whether you can afford to lend.
c) Be
tense till it is repaid as you never lend.
d) Not
have any extra to spare.
Q5.
How do you handle tax planning?
a) You
know how to minimize your tax bill.
b) You
hate it and want to get over it soon.
c) You
file returns well before the deadline.
d) You
always scramble to file your returns.
Q6.
You would apply for a loan to :
a) Invest
in a business or some high-yielding opportunity.
b) What
loan? You don’t borrow money as its easy to lose track of repayment.
c) Make
essential repairs, pay off debt, or increase future security.
d) Go
on vacation or buy what you really want
Q7.
What you think about the future:
a) You
know it will be fine. You plan to earn plenty of money and make it grow
b) You
hope the future will take care of itself.
c) You
feel reasonably confident, since you have saved systematically for years.
d) You
are concerned .Its hard for you to save.
Q8.
Your primary financial objective is :
a) Earn
and grow your money as much as possible, as quickly as possible.
b) Unclear.
c) Save
enough for retirement and other financial goals.
d) Earn
enough so that you can buy whatever you want
What
the answer means:
Mostly As: AMASSER
„ You
equate money with self-worth and power. Lack of it leads to depression. You are
the happiest when you have money to spend, save and/or to invest. You like
investments with high rate of return.
„ Suggestion:
Keep a track on your investments and wealth generation. Keep rotating funds if
previously selected funds are not performing well.
Mostly Bs: AVOIDER
„ You
find it tough to balance your cheque book, pay bills or file taxes timely. You
don’t know how much money you have, what you owe or how you spend. You avoid
investing money, even if you have some.
„ Suggestion:
Setting aside money. Have a target % you want to save depending upon your
requirement.
Mostly Cs: HOARDER
„ You
like to save money. You like to prioritize financial goals. You have a hard
time spending money on luxuries. If you invest, you tend to be concerned not
with liquidity but with future security.
„ Suggestion:
Start exploring investment options, Eg: MFs, equity shares.
Mostly Ds: SPENDER
„ You
enjoy spending for your immediate pleasure. You have hard time saving money. It
may be difficult for you to put aside enough money for future oriented
purchases and long term financial goals.
„ Suggestion:
Set aside money. Give yourself a restriction on spending.
Take Away
„ Increase
Net Worth (Asset- liabilities): You must always look to appreciate your net
worth i.e. all assets after considering the liabilities. Lower the liabilities
the better individual feels.
„ Spending=
Earnings – Savings- Spending Should always be after savings
„ Planning
for contingency fund- 3 months’ salary-Liquidity Eg: Flexible RD
No comments:
Post a Comment