What kind of mindset do you have financially? Are you a borrower, a saver or an investor? We’ll talk about these three types of mindsets.
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Are you a borrower, a saver or an investor? These are three different kinds of financial mindsets, and we’ll go through each of them to talk about the pros and cons.
“We all have different ways that we think and act around money. A lot of them are habits or mindsets that we’ve developed,” said Scott. “Maybe it’s the way you were raised.”
It’s important to understand these mindsets and figure out why you act the way you do and how to change, if you feel that’s necessary. Habits are tough to break. You have to get emotionally involved.
It’s the mindset of a spender and often happens after high school or college. Money is so easily available to you through credit cards and loans.
There is good debt, such as borrowing on an appreciating asset such as a home. Then there’s bad debt, such as a car, vacation, boats or other things that go down in value. You don’t want to be paying interest on these things. You’ll never get that money back.
These people stash money away and live within their means. They plan in advance for purchases and don’t rely on credit cards.
We see this mindset a lot with people who are baby boomers. They’ve seen people suffer with finances, and they don’t want to live the same way. People who are savers tend to stay savers and have trouble spending.
Listen to the entire episode or click on the timestamps below to skip ahead to a particular question.
[5:07] – Borrower mindset
[11:06] – Saver mindset
[15:40] – Investor mindset
Thanks for checking out this episode. We’ll talk to you again soon.
“We all have different ways that we think and act around money. A lot of them are habits or mindsets that we’ve developed.”