What we'll cover
How to identify your money mindset
Four common financial perspectives
How a wealth advisor can help you optimize your mindset and money
All kinds of factors can impact how you think about money. Where you grew up, what schools you went to and countless other formative experiences from early in life can have a significant impact on your relationship with your finances.
For example, if you grew up in a house where money was never discussed, you might still see it as a taboo topic. Alternatively, if your family saved every penny, you may be an excellent saver but nervous about investing in the stock market.
When you work with a wealth advisor, a good one will take your personal money goals and habits into account. There’s no one-size-fits-all when it comes to a financial strategy, so it’s important that yours is true to your own money mindset. At Ally Invest Wealth Management®, our advisors take your habits and history into account to give you the most personalized approach to your finances.
To get an idea of your money mindset, take our quick quiz below. And read on to learn more about the challenges and opportunities of common approaches to money and how to optimize your approach.
The adventurer
If this is your money mindset, you love to get out there and spend your money on experiences and treat yourself with special purchases. While you’re not necessarily an over-spender, you don’t tend to overthink your purchases.
Opportunity: To expand your money horizons, look for new ways to work toward your financial goals. Consider using tools like buckets in Ally Bank's Savings Account to focus your savings and reach your targets faster. If you’re not already, working with a wealth advisor can be a great way to capitalize on your intrepid spirit. By providing expertise and an outside perspective, a wealth advisor can help you identify new ways to optimize your income — like investing — freeing up more funds for your next great adventure.
The collector
Your financial perspective is focused on saving. If this is you, your emergency fund is always a top priority. You also probably try to have more than the recommended amount set aside (just in case). You are focused on the future, and may lose sight of the present sometimes, spending mostly on the essentials.
Opportunity: Build on your strong savings ethic by adding investing to the mix — and remember it’s okay to splurge now and then. A wealth advisor can help you find the right mix of saving and investing for your financial present and build a map to pursue your future goals.
A wealth advisor can help you find the right mix of saving and investing for your financial present and build a map to pursue your future goals.
The futurist
You can’t predict what’s next, but that doesn’t stop you from trying. This mindset means you’re a frequent and likely fearless investor. You always think about the future and where to put your money to help you pursue your goals. If you’re not already day trading, you might be considering it.
Opportunity: Don’t let your future-focused perspective distract you too much from your present. By balancing risk with your investing ambitions you can continue to pursue your financial goals without taking too big of a chance on your future. A wealth advisor can help you maintain that perspective with objective, expert guidance on how to strategize your finances and diversify your investment portfolio.
The taste tester
For many, living in the present is the secret to feeling secure. That’s true of life and certainly true for finances. If you’re focused on the now, you may not know where to start when it comes to looking toward your financial future or you may not be ready.
Opportunity: Whether it’s fear or procrastination, budgeting is a good place to start expanding your financial perspective. By mapping out how much income you have each month and what that paycheck goes toward (rent, groceries, entertainment), you can start to wrap your arms around where you want to go next. A wealth advisor can be helpful in these instances by providing you with the information you need to make choices about your financial future. They can walk you through the details of your choices, whether that’s setting savings goals or building an investment portfolio.
Mind over matter
When it comes to money, one perspective isn’t necessarily better than any other, it’s just different. Understanding your money mindset can help you better map out your financial future. By sharing that perspective with a financial advisor, such as an Ally Invest Wealth Advisor, you can get expert advice catered to your own outlook.
