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What’s Your Budget Personality?

It’s no surprise that we all have different talents and abilities, or that we like to do things differently than everyone else. What can be surprising is that your personality affects how you approach (or avoid) budgeting, too.

Some people are good at math, some are naturally organized, some prefer to go with their instincts, and some operate best within an established framework. Whatever your budget personality is, there are ways to make this valuable tool work better for you.

We all know that creating a budget and having a clear, ongoing, picture of your finances is the best way to be financially successful and to meet your financial goals. Work with your personality and your individual talents to most effectively set up and follow your budget.

See if you recognize yourself from these budget personality types:

The Master Budgeter
You have a budget and financial goals and you follow your plan. You set aside money for each goal—retirement, a new car, a down payment, or paying off debt—and you stick to your budget. You are focused and disciplined.

Where you could use help:
Unexpected expenses: In your master goal planning, don’t forget to plan for the unexpected and for emergencies. Be sure to set aside money for situations like car repair, unexpected medical expenses, moving, or family events.

Budgeting to try:
Take a look at your budget and actual expenses from last year, or your bank statements—there were probably a few surprise expenses there. Think about what small to medium to large unexpected events could happen this year, what happened last year, and factor those into your budget. Also, relax a little. You are in great control of your finances, so use a little to enjoy life.

The Systemizer
You have a system for everything, and it’s set up just so you don’t have to think about each task again. You use paycheck direct deposit, automatic bill pay, automatic deposits to savings, etc. You don’t enjoy finance, and don’t want to spend extra time on it, but you are handling your responsibilities, even if you don’t have an actual budget.

Where you could use help:
Having all your finances set up to process automatically means you might be letting some areas slide, and might not be spotting problems. If your paycheck is deposited automatically, you might not see a mistake on your check, and the same thing applies to your bills. Without stopping and taking a look at your finances periodically, you may be missing out on opportunities to save money, or to maximize your savings.

Budgeting to try:
Set up a systemized budget and stick to it: Download bank statements and credit card statements that already have expenses in categories. Review your finances, and look for services you may not be using, and for service and bank fees you could avoid. Check your deposits and make sure they’ve all been credited, and that they are correct. Take a look at your bills and investigate any large variances.

The Last-Minute Manager
You do handle all your finances, but you don’t use a budget, and you don’t really have a clear idea about where exactly you are financially. You manage your busy life via your phone, paying bills online at the last minute, and using to-do lists. Your life is all about the next thing that has to happen today.

Where you could use help:
You need to step back and take a look at the big financial and life picture. Where do you want to be in a year, five years, or ten? Are there any big financial issues you need to be planning for (college, a house or car purchase, paying off debt)? You most likely make impulse purchases, especially those that “save” you time, and you probably don’t have much of an emergency fund plan.

Budgeting to try:
Using even a simple budget will help you not just set yourself up for the future, but will help you handle your last-minute tasks not so last-minute. Tracking your expenses will help you see where you can save time and money. There are quite a few budget apps for your phone that are perfectly suited for you.

The Ostrich
You have your head in the sand when it comes to money and finances. You’d like to avoid the whole issue, and you do so as much as you can. You pay bills when you get a late notice, you pay extra service fees and late charges, and you miss opportunities. You don’t know how to balance your checking account, if you have one, and you have no idea what your financial picture is. If you have cash in your pocket, you feel perfectly fine about spending it.

Where you could use help:
You need help everywhere! It seems overwhelming to even think about taking charge of your money, especially if it seems like you don’t have enough to go around, but you can do it. Just take it slow and one step at a time.

Budgeting to try:
Start off by going week by week: keep track of what you spend and what you make each week. You can use a computer spreadsheet, a budget printout, a phone app, or just scribble it all on a piece of paper—the important thing is that you are keeping track. At the end of each week, see how you did—did you have money left at the end of the week, or were you short? Look at your spending habits and see where you could improve. Gradually move to a more slightly formal and ongoing budget. This will help keep you on track, and let you compare the past and plan for the future. Also, use services that will help you keep on top of paying bills and avoiding unnecessary fees: automatic bill-pay services, apps that help you track your spending and your bills. Or, try the “envelope budgeting” trick: Use an envelope for each of your regular expenses, and once a week put a budgeted amount of cash in each one.

Keeping your specific financial personality in mind when approaching your budget will help you become more successful in managing your money and in planning for the future.

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