Everyone has a spending and saving style. Do you know yours?

 

Spending and saving tell a lot about your financial health. Even in uncertain times, you have a natural preference. Being financially healthier starts with understanding what you do. Can you spot your money-management style?

While we are in the uncharted territory of a pandemic and accompanying financial uncertainty, some of your financial choices may have changed, some not. There are ways to take control and to build a stronger financial resilience. Having a budget and sticking to it, saving any extra money and being aware of your financial style can all help.

Looking at the usual way you work with money: Can you spot yourself here?

The penny-pincher

Who you are: Typically, a big chunk of your money goes straight into savings – all to reach your short-term and long-term goals, and to have something left for emergencies. Whatever you set out to do with your savings, you will get it all in due course. 

What you could do better: Are you investing your money to work for you? There is a difference between simply having a healthy bank balance and investing money to grow. With structured investments, your money grows by earning interest over time and you don’t have to micro manage your money. You won’t necessarily be able to access the money immediately. There are accounts, like the Demand Savings Account from Discovery Bank, which can grow your money by up to 5% in interest and not tie it up. Remember penny-pincher, spending a little to reward yourself, won’t derail your goals. With your disciplined approach to saving money, you are still set for a secure financial future.

The big spender 

Who you are: Generally, you can be compared to the meme of a well-known actor handing out dollars on payday. While emptying out your bank account on those big ticket purchases can be fun, it only lasts for a few days of the month. Carpe diem might seem like a good philosophy today, but spending more than you earn will catch up with you sooner rather than later. 

What you could do better: In becoming financially healthier, there are five behaviours that improve financial wellbeing – one of them is not to spend more than you earn. You need to have a plan. Start a budget and balance the amount you spend with the amount you save. Your money can last the whole month and eventually, you can avoid living from payday to payday. Change also doesn’t always happen overnight. Each month, cut down a little on what you spend and save that little more. Understanding your financial behaviour and using a financial tracker can come in handy. Start by knowing more about your finances with the Vitality Money calculator and using the Vitality Money tools to track what you spend and save. You can get financially healthier, and spoil yourself every now and then.

The money guru

Who you are: As a money guru, you save a lot and in the right way – with a proper financial portfolio. You generally have a total of “zero” cents being lost on wasted expenditure and you put your money to work. You have mastered the art of fixed-deposit savings, your savings all have a purpose, and you even foresee that you could retire early.

What you could do better: You are on the right track, using different savings tactics. Keep on doing what you are doing. There is one more thing. Make sure that you get the best interest and growth of your wealth for all your efforts and good financial choices. With Discovery Bank, your good financial choices translate into a Vitality Money status that can give you boosted interest with Dynamic Interest Rates, thousands of Discovery Miles to increase your spending power and you can get rewarded for being a master of your finances with many other rewards and benefits that add to your overall financial wellbeing.

The ostrich

Who you are: You know you have to make financial provision, but generally leave the technicalities to someone else. You rely on your savings to be taken care of by the HR or finance departments and spend little time understanding what your money is doing. You live by: ‘as long as you have some, somewhere for when you need it’. You generally draw cash once in a while and swipe your card for most of what you need. You don’t really spend too much time taking note of where your money goes, as long as your day or month is going well.

What you could do better: You may need some support in managing your financial plan and ask for advice from a professional. Take a look at your bank account to see where your money is going. Spot the trends and try follow a planned budget. Consider adding a monthly scheduled transfer to automatically transfer savings into a savings account each month. That way your savings is not left in your transaction account where you might use it before you remember to transfer it yourself. Remember, personal savings is important. With the Vitality Money calculator, you can see how your behaviour is influencing your financial health and the Discovery Bank app gives you a real-time view of your money. All the Vitality Money rewards will keep you motivated to save and you’ll have tools that give some structure to managing money.

Penny-pincher, spender, ostrich or money guru, everyone could be experiencing uncertainty. Even if you start small, now could be the perfect time to understand and change your style. Vitality Money can help you manage your finances better, while giving you the rewards of better choices.

Please note that the interest rate quoted is nominal annual compounded monthly.
Discovery Bank Limited. Registration number 2015/408745/06. An authorised financial services and registered credit provider. FS P number 48657. NCR registration number NCRCP9997. Limits, terms and conditions apply.

Want to know how healthy your finances are?

Discovery Bank clients get their Vitality Money status by setting up Vitality Money on the Discovery Bank app and completing the Vitality Money Assessment. With the newly launched Vitality Money Calculator, anyone can complete the assessment on the Discovery website and find out their status and unique HealthyFood and other rewards.

The Vitality Money Calculator

Related articles

Shop safely with Discovery Bank’s contactless payment options

Retailers, shopping malls and most services are open for business. With COVID-19 around, we all have to be more mindful. And, at least for some time ahead, it will change the way we interact and shop. Fortunately, Discovery Bank makes contactless banking and payments easy for our clients.

Don’t let lockdown leave you vulnerable to cybercriminals

While self-isolation will keep you safe from the dreaded COVID-19 virus, it is up to you to keep yourself, your family and your company safe from digital scammers and hackers who will be looking for any opportunity to take advantage of you during this time.

Now is a great time to boost your financial knowledge and save big!

Discovery Bank and financial education partner, Worth, bring you an exciting learning channel to improve your financial knowledge. Why not use this time to get practical tips for better financial control every day?

Log in

Please click here to login into Discovery Digital Id

Please click here to login into Discovery Digital Id