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Is your Money Mindset aiding your financial goals or acting as a setback for your financial goals?

Just like different types of personalities, there are different money mindsets. Find out which one are you.

“Your idea of poverty is very different from mine”.

Kangana Ranaut

This statement by Kangana Ranaut speaks volumes of how each person’s mindset can be vastly different. The mindset that people have towards money plays a major role in the way they use the financial instruments available to them. Your financial goals, whether short term or long term goals are dictated by your mindset towards money.

We have identified 4 mindsets that investors have. Find out which mindset you belong to and what financial instrument is suitable for you.

Explorers: “I want to keep my future secure”

Explorers seek to make sure that they live financially independent lives with security post retirement. You prefer using financial instruments that have a lower risk. If you are an explorer, you will agree with the following beliefs:

  • Quality of life defines success
  • Financial needs must be balanced with all my other needs
  • Financial independence means you can do what they want in the future
  • You take care of bills and payments quickly
  • You generally prefer minimal engagement with financial services

You rely on your gut feeling to make financial decisions. You generally prefer to stick to a savings account and at times might use instruments like fixed deposit or a recurring deposit. You prefer investing in zero risk instruments which ensure the security of your money.

Explorers prefer to reduce their liability and do not take loans. The few explorers that use a credit card are most likely to pay their credit card balances in full on receipt of the bill. Every explorer’s ultimate objective is to make sure that they are able to create and maximise your wealth.

Achievers: “I want to achieve my financial goals”

In this mindset, you define success by budgeting for clear, often tangible goals. This helps you to feel in control and prepared for the future. How does this quality reflect in the financial instruments that you use? What are the beliefs of achievers? If you are an achiever you will agree with the following beliefs:

  • The long term is more important than your day to day expenses
  • A structure is good for keeping track of where the money goes, but you feel comfortable as long as you are sticking to the spirit of your budget
  • You play to the rule book. Always use rules to guide financial decisions
  • Seek information and guidance to best achieve your goals

You also understand the purpose of a savings account and which savings account you must open to get the maximum interest rate. Choose the best savings account for yourself from here.

You are highly interested in investing. You look at the bigger picture. You establish your goals. You tend to invest what you have left after spending rather than investing whatever is left after what is spent. An achiever might even diversify their portfolio by investing a part of their portfolio in equities through systematic investment in equity mutual funds as well as safe instruments like Fixed Deposit.

You understand the concept of “Higher the Risk, Higher the Profit but there is an equal chance of Higher the Losses”. Achievers show more “Manage it” and “Get it” attitudes than Experiencers, Balancers, and Explorers do. They are determined to get what they want.

The Balancers: ‘I want the best value for my money’

SALE! SALE! SALE! Does this hook your attention? If so, you are highly likely to be a balancer.

In this mindset, you define success by getting the best deal in each transaction, maximizing rewards and staying on their financial plan so they don’t have to worry. If you are a balancer you will agree with the following beliefs:

  • Monitoring finances gives you power and control over your lives
  • Order and consistency is most important; uncertainty and unexpected expenses throw you off
  • You are always trying to find the best deal and value
  • Among a group, you are the most likely to maximise credit card points and rewards
  • You tend to spread out your expenses and rely on schedule‐oriented bill payment
  • Compensates for other expenses and makes a tradeoff on the spot

As can be seen from the beliefs of Balancers, they are planners to the tee. They are aware of all the online sale’s and are aware of how they can maximize their rewards. You are very risk averse and therefore, do not invest in risky assets like equities because it does not give you guaranteed returns. You would prefer to invest in a fixed deposit or a recurring deposit.

Experiencers: ‘I am living for today’

You only live once. With your YOLO mindset, you define your success by enjoying the present. You seek delight in how you choose to spend money and are optimistic about the future. You might live beyond your means. This may not be to please the audience that you hang out with, but you do not know any other way but to live in the present.

Some of your beliefs include:

  • Money is best utilized when spent on experiences rather than spending on tangible assets
  • Lifestyle will always come first, and you will do whatever it takes to maintain it
  • You believe in spending the extra money. Any Experiencer will agree to the following statement. “I had a referral bonus for work that I didn’t put into budgeting because it’s basically free money, so I might as well enjoy it and I bought myself a bag.”

You tend to use premium credit cards and use these cards to lead an extravagant lifestyle. When it comes to investing, you trust your financial advisor to make the best decision for you. Looking after your future is done only by your financial advisor. You prefer to enjoy the moment you are living in.


It is important to understand which type of mindset you have. Identify your mindset towards money. Based on the mindset, establish financial goals both for the short term and for the long term as well. Invest in the different financial instruments that will help you reach those financial goals.


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