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 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.