Reset your finances in 2022 with these four money mindsets!

 February 3, 2022

By  Chase Edwards

New data from NAB shows that 60% of Aussies are interested in improving their finances in 2022, I mean who wouldn’t be! But when it comes to money there have been four key mindsets towards it that split us apart.

The dollar stretcher who watches their finances down to the last penny. They track how they spend every dollar and usually struggle in the days leading up to payday.

Is setting a saving goal the only way to keep you on track? Goal-Driven savers focus on achieving a specific financial target and usually once this target has been achieved either the goalposts change or get moved.

Love seeing a holiday deal or 50% off at your favourite clothing store? Impulse spenders live for the moment and usually don’t like thinking about it for too long.

Habitual savers love saving their money. They feel like they are safe and secure financially and get satisfaction from seeing that balance grow.

Knowing what category you fit in may help give you an understanding of the way you feel, think and interact with money and saving. Once you have an understanding you may understand where you can improve.

Tips and Tricks

Dollar stretchers may find some relief knowing there are services available to access funds in an emergency. Although this sort of assistance should be last resort and only used in extreme cases.

To avoid needing assistance you could build up an emergency fund. This could be a separate savings account that you put money aside in on good weeks and only touch this account for emergencies. A good emergency fund is usually about three months’ worth of living expenses.

Goal Driven Savers are best to set a savings goal and then work out ways to achieve this. Once they have their emergency account set up, and full, they should make a separate savings account in a low to no fee setup. In this account, they should put part of their weekly wage straight into this account. If you want to be really onto it you could set up an auto-transfer into this account so each pay cycle the exact same amount is going in.

Impulse spenders need to keep receipts! Just bought a new bag on sale and shortly after it arrives you realise it doesn’t even fit your phone. Impulse spenders have to try and avoid any unnecessary purchases just after payday and should try to wait until the end of that monthly pay cycle so they aren’t short for any expenses. Having savings and emergency accounts paid off first and foremost means you’re less likely to dip into the money you will need. If you find something you love and must have saved the link or added it to your cart to see if you still love it in a few days

Habitual savers really need to not overestimate their saving ability’s as this will lead to disappointment and potentially blow the budget. When planning the month they need to remember car payments, rent, insurance, emergency repairs, a new work computer are all unexpected expenses that can occur at any moment and you will have to change the plan. Habitual savers that like to feel secure by having a large sum of money should look at things like long term deposits or putting the funds into an offset/redraw account if you have a mortgage. If you don’t have a mortgage plan that step. If you’re not interested in property find that large ticket item that will drive you to save.

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