Are You A Money Planner Or A Money Chancer?
Without taking a chance, there is no opportunity for reward, right? Money planners beg to differ, preferring not to take chances with their hard-earned money. So are you a money planner or a money chancer? This article offers some sound advice, no matter which side of the money fence you are on.
Are You A Money Planner Or A Money Chancer?
Planners vs. Chancers
The reality is that no two people have the same strategy when it comes to their money. Whether your financial behaviour involves taking chances or not, it is best to know the level of risk you are willing to take with your money before you decide to move forward with investments or other financial tools.
Are You A Planner?
In terms of personal finances, people who plan are looking into saving for their retirement, signing on for a life insurance plan, and other financial choices that involve long-term reward.
The chances these types of people are willing to take are very low, with most opting for low-risk investment types and plenty of strategies to insure that they maintain their nest egg, even if the growth is slow.
A planner will be well away of how they can find the best life insurance plans from comparison sites like Money Expert. A money planner shops around for the best deal and regularly switches and compares deals every two years.
Are You A Chancer?
A typical chancer will forego any type of investment that does not offer them an exciting opportunity to be rewarded in a big way. This type of personal financial choice often involves dipping into the main nest egg with the idea that it will pay off in the end. Willing to take more chances with their money, these types of people are attracted to short-term rewards, especially if they are high.
Planners And Chancers Take Note
No matter what type of financial strategy you have, whether planning or chancing, here are some key processes that should be followed to become successful.
1.Set Goals
The financially savvy have a clear goal and set period to achieve the goal, along with being able to ride out the uncertainty. A first time home buyer, for example, will typically need to get the best deal possible, lock it in and then search for a property to purchase.
A money planner will come up with a strategy, such as agreeing a two year fixed rate mortgage so that they can renegotiate and find a better deal before the fixed rate changes. A chancer is more likely to take the cheapest possible mortgage deal which could be a variable rate.
2.Understand the Market
Do your research and know where your money is going to be utilized. Whether you are a planner or a chancer, do not be locked in to a high APR on your credit card. Go online and compare the offers for low APR credit cards.
3.Get Money Savvy
When it comes to finding a savings account, do you know the difference between notice accounts and fixed-term? It pays to look and learn about the options in savings accounts, credit cards, and any other type of financial instrument that affects how much interest you are paid.
4.Patience
When you are setting your goals, no matter if you are taking a chance or planning, it pays to have patience. One of the finest qualities to have for financial success, having patience means that you can ride out the low reward times with the eventual payoff in mind.
5.Even Planners Take Chances
Though very low, even people who class themselves as money planners take some risk. To top it off, even those who identify as money chancers make some plans, so the two really have more in common than not. The point is, be open to planning or taking chances, no matter your overall game plan.
6.One Person’s Risk Is Another’s Reward
Personal money is just that, personal and unique to each individual. Knowing what your risk level is can mean the difference between success and failure with your money. Do not ignore your personal preferences when it comes to your money decisions. Are you a money planner or a money chancer?
