Money Personalities: The Coaster aka The Optimist
Our last money personality in the Money Personalities series is the Coaster/Optimist. As in other blogs, it is important to note both the strengths and challenges of this unique money personality.
General Characteristics of Coasters and Optimists:
- Main characteristic: thinking the future will take care of itself
- Driven by success rather than accumulation of wealth for its own sake; can often feel their investment in their businesses is enough and no other diversification required
- Often feel pride in how they have made and managed money so far
- Able to rebound from a past money mistake, such as a bad investment, learn from what went wrong and not let it stop them from investing in the future
- Some coasters have a guilt and conflict in exceeding their aspirations and income and/or doing things “differently” than their parents or role models
A Coaster focuses on:
- feeling safe and secure
- getting there and doing what you can to stay there
- safety means job security and a stable financial structure, but not necessarily a high income
An Optimist believes:
- nothing can go wrong because they will ultimately get what is rightfully theirs and that which they deserve:
- Some good examples of this are the Baby Boomers (first generation to come of age in widespread economic prosperity)
- Those born in the 1960s and 1970s (those growing up in the technology age and where dot.com and Internet wizards literally changed the world)
- Some optimists let their money ride on their decisions alone rather than investing in other opportunities (diversifying)
Strengths of Coasters and Optimists:
- Organized, responsible and focused on stability
- Vigilant about their finances and so are educated about money and market trends; likely to have decent insurance coverage and to have done some retirement planning
- Hard workers who develop a good sense of proportion and build good working relationships; have most financial ducks lined up and this gives a sense of pride
- Optimists have good self-esteem and accomplish a lot with the view that prosperity and good fortune will come their way.
- These people are willing to take risks and seek out new opportunities to both create and innovate.
Challenges of Coasters and Optimists:
- A challenge can be an attitude of complacency, such as ignoring the effect of inflation on investment; they are certain their investments will still pay the same returns as in the past; they don’t diversify the investment portfolio
- Possibly developing tunnel vision: not seeing beyond the financial boundaries and focusing straight ahead
- Coasters worry about making a change and may turn down great opportunities
- Optimists are less conservative than Coasters but can have an attitude of entitlement – feeling that the world will inevitably provide for them. This attitude of entitlement doesn’t prepare them for financial setbacks and could result a lower financial safety net to cover times of a financial downswing. Optimists may find themselves not being willing to adjust lifestyle/spending habits through financial adversity. Some optimist may get trapped by the dynamic of positive thinking.
- Often coasters and optimists “do not plan on retiring”.
So if the power of positive thinking in financial matters rings true for you, give us a call to provide a second opinion on your finances.
What is enough? Do I have enough?
Having a financial plan can lessen the effect of a financial downturn or an unexpected financial event, i.e., losing a job, a divorce or a separation.
At Next Step we are here to listen and give you that educated, experienced opinion. Call us at 306-242-5660.