CAPE TOWN - Year-end festivities will come and go, if you have adopted a money management style corresponding with your budget you will not be left with regrets at the beginning of 2018.
People relate differently to money, hence the head of consumer education at FNB, Eunice Sibiya identifies five money management styles:
1. The avoider: These are people who avoid thinking about money and never keep track of where their money goes. They often spend more than they earn and find themselves in debt.
2. The big spender: This type cares about status, their wealth is permanently on display by spending on premium brands.
They do not show much attention about what they spend their money on. Big spenders rely heavily on debt to finance their lavish lifestyle and take a gamble on uncalculated 'investments' in search of a quick buck.
3. The shopper: These people consider shopping as a hobby and a form of relaxation. They always want to be seen as trend setters, and often make impulse purchases on products that they don't need.
These shoppers are often aware of their addiction and are concerned about it, but they never take any remedial action and they hardly ever have anything left to save and invest for the future.
File image: IOL
4. The hoarder: These are types are often over cautious about where and how they spend their money. They stick to a strict household budget, love a good bargain and avoid making luxury purchases.
5. The Investor: These are people who are smart with their money. Investors are well aware of their financial status and live within their means. They make careful and balanced decisions with their investments.
Most importantly, they make money work for them and aim to have a diversified portfolio of investments to cover future needs.
Sibiya said one of the ways to avoid financial hangover at the start of the new year, is for consumers to conduct some introspection and understand the relationship type they have with money.
Consumers are encouraged to set financial goals and work towards meeting them within the set time frame in order to achieve financial freedom," concludes Sibiya.
- BUSINESS REPORT ONLINE