2-3 min read (or listening to your favourite artist’s new song)

Did you know there are different money personalities? Ever wondered what yours is and what it means for your bank account? Over the next few weeks, we’re rolling out a series of Slice articles on different money personas to help you identify your type and learn more about what the pros and cons of each personality are. This week we’re diving into the Avoider persona.

The Avoider 

Avoiders often ignore anything that has to do with their money and spending habits, which in most cases leads to debt piling up. This is mainly due to them feeling overwhelmed by financial terms, ideas, habits etc. These are the personality types that don’t keep tabs on the where, what and how of their money and are firm believers in “see no evil, hear no evil.”

Are you an Avoider?

Do you often close your eyes and just hope everything in your bank account will work out for the best? Waiting until the last minute to do your taxes, bills piling up, often having to borrow money, and avoiding any form of financial statement are all key indicators of an Avoider. Avoiders are often shy of making any decisions about their finances and become uncomfortable when discussing money as well. Investing isn’t prioritised, as most Avoiders find it’s too complicated.

What the Avoider is doing right: 

Unlike Big Spenders*, Avoiders don’t buy things to make social statements or to make themselves feel good. They aren’t controlled by their money either, and don’t let finances rule their lives.

What the Avoider isn’t so great at: 

Although the Avoider might be able to manage their debt from month to month, as time goes on and unexpected expenses occur, the Avoider can easily find themselves in a financial crisis.

The Avoider is missing out on opportunities to secure a good financial future. Habits that include spending more than they earn, borrowing money, and keeping no record of their finances whatsoever might put the Avoider in hot water at some point. Not planning for retirement is also a consequence of not facing their money. 

So, you’re an Avoider. Now what?

Not facing your money is like not watching your diet; you indulge and indulge without getting on the scale and one day you realise you’ve gained more weight than you realised. At this point, getting back in shape is much more of struggle than if you were conscious of your actions all along.

Small things can start to change your perception of money and be beneficial for your mind and wallet in the long run. Avoiders should prioritise credit card repayments with the highest interest and try to pay off their debt before they start saving or investing. Once that’s under control, the real fun begins. 

Automating investments and savings is the best way to control your finances without doing the heavy lifting. Yes, it’ll take some work at first, but once you’re all set up and ready to go, the work will be done for you. Make sure to start planning for retirement as soon as possible, too. Try thinking long-term – future you will be super grateful!

Keeping a budget can help you track exactly how much you spend and where you spend it, which will help you identify obstacles and figure out where changes can be made. Using an app like 22seven can give some useful insights into where you spend most of your money, which is something most avoiders aren’t aware of. 

Finally, try to read at least one financial article a week, or keep an eye on our Slice mailers. This will help relieve some of that money anxiety and make money topics seem less daunting. Look out for articles that explain financial terms easily and clearly. This should result in you feeling less overwhelmed and more inclined to keep an eye on your financial statements.

*Read the first Slice in this series to learn more about the Big Spender persona.

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Written by .

Lisa, a Slice and blog writer for 22seven, believes that financial literacy is one of the most important skills you can have. She aims to keep information about your finances as simple and straightforward as possible to ensure anyone can learn to boss their money. In her spare time, you'll find her on the tennis court, on her mountain bike or spending time watching documentaries.
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