Credit: Shutterstock photoIt might not look like much, but your wallet can say a lot about you. At first glance, it’s a place to store your driver’s license, credit cards and cash, but closer inspection reveals details about your money habits even you might not realize.
Since it contains many essentials, your wallet goes everywhere you do. Your money personality might be evident with just a quick glimpse, or the truth might not be revealed without a peek inside.
If you’re looking to change your money habits for the better, overhauling your wallet might be a great starting point. Even if you’re happy with your current financial state, it’s still interesting to know what your wallet is saying about you.
Find out what your choice in wallet reveals about your money personality. You might like what you see, but if not, consider it a wake-up call to improve your financial health.
1. DESIGNER BRAND
You enjoy the finer things in life, and your wallet reflects that. If you spent $700 on a Louis Vuitton wallet or $360 on one from Gucci, money is clearly no object to you. Prestige is high on your priority list, and you likely have the receipts to prove it.
There’s nothing wrong with treating yourself to nice things, but your penchant for designer labels could be a red flag that your spending is off the charts. Take inventory of your finances to make sure you can afford your lifestyle. If your lavish expenditures leave nothing in your account for savings — or worse, in debt — it’s time to cut back.
Even if you’re not in the red each month, improve your financial health by creating a budget and sticking to it — if you’re not already. Budgeting allows you to know exactly where your money’s going, so you stop wasting hard-earned cash on things you don’t need. There’s nothing wrong with buying designer things, but make sure they fit your budget.
2. OVERSTUFFED
If you have to put a rubber band around your jam-packed wallet to keep it closed, it’s time for a change. You’re carrying a heavy load of things you don’t really need, and this likely translates to your spending habits.
Marc Roche, co-founder of Annuities HQ, used to have a bulky, overflowing wallet, filled with things he didn’t need. A few months ago, his wife gave him a slim wallet, and he says he’ll never go back.
“A lot of the things we keep are things we don’t need anymore — the same goes for our finances,” Roche said. “Review your banking statements every month to see if there are recurring costs you no longer need — like subscription services you don’t use, or even hidden account fees.”
Cutting back on the sheer volume of things in your wallet is a great starting point to trim your budget. Lighten your load — literally and figuratively — so you can focus more on the things that are most important to you. If you don’t know where to start, check out these things you shouldn’t keep in your wallet.
3. PERFECTLY ORGANIZED
Sandy Massone, a financial advisor at Integrated Wealth Management, carries a pristinely tidy wallet with a compartment for everything. This makes it easy for her to maintain order, monitor which credit cards she’s using and ensures she leaves the house with exactly what she needs, without having to think about it.
“I am an organizer and live by a budget so I like to track where I spend money,” Massone said. “Keeping receipts allows me to enter them into my smartphone app, usually once a week, so I can track my spending. In our swipe-to-pay world, I find it important to always have cash on me for those times a card won’t work or if I have an opportunity to bargain for a good deal and can get a discount by paying cash. Interestingly, my cash is always kept in value order so I can easily see how much I have on hand.”
On the surface, it’s just a perfectly organized wallet, but it goes deeper than that. If you take the time to keep your wallet in perfect order, you probably do the same with your finances. You don’t need any advice to maintain your financial health, so keep up the good work.
4. VELCRO WALLET
Remembering to snap a wallet shut is an extra step you don’t want to worry about, so you opt for a Velcro closure. Likely reminiscent of one you had as a child, you get a wave of nostalgia every time you open it.
No doubt about it, your wallet is more fun than the boring mature styles carried by your friends, but this might not speak well to your money habits. Mastering the art of adulting means taking responsibility for your spending. Approaching your finances with a childlike mindset can lead to chaos, so take a closer look at how your funds are allocated.
If you haven’t already taken grown-up steps like setting up a retirement plan and enrolling in automatic bill pay, it’s time to look at your finances through the eyes of an adult. The good news is you don’t have to ditch the Velcro wallet. Keep it, but allow it to serve as a reminder that you’re a kid at heart, so consider seeking guidance from a financial advisor.
5. MONEY CLIP
When it comes to your wallet, excess baggage isn’t your thing. You carry the essentials — driver’s license, a credit card or two and a little cash — because that’s all you really need.
Chances are, you take the same approach to your finances. Staying on top of what’s in your wallet probably means you’re also cognizant of where your money goes. You likely review bank and credit card statements with a fine-tooth comb, searching for ways to cut back. It’s safe to assume impulse purchases aren’t your thing, preferring well-planned, practical expenditures instead.
Overall, your responsible money habits should serve as an example for others. Your financial health is solid, because you don’t bother with things you don’t need.
Sometimes though, it’s okay to have fun and indulge a little. More than most people, you know exactly how much you can afford to spend, so don’t deprive yourself of the occasional nice dinner out, weekend getaway or new handbag.
6. DISCOUNT STORE BRAND
Retailers like Target and H&M offer stylish wallets without a hefty price tag. If your wallet came from one of these stores or a similar locale, you’re a savvy spender who knows how to stretch your dollar.
Chances are, you clip coupons and limit shopping sprees to sale days because you don’t want to exceed your budget. Your financial health likely gets an A-plus, because you know what you can afford and you’re okay with that. When you want to make a purchase that exceeds your standard limits, you save up until you have enough in the bank, because you’re smart like that.
Your ability to make a budget and stick to it is seriously impressive. Keep up the good work and take it as a compliment when others call you thrifty. Knowing how to live a good life within your means is an art many people haven’t mastered, so consider yourself very skilled.
7. NO WALLET
Organization isn’t really your thing. Rather than carrying a wallet, you opt to keep your driver’s license, credit cards and cash on your nightstand, kitchen counter or wherever you put them down the night before. Not having a wallet to store key essentials means you probably waste a lot of time looking for lost items. It’s probably also rare for you to leave the house without forgetting something.
Some people are more orderly than others, and that’s okay. But not carrying a wallet at all doesn’t speak well to your financial health. You’re probably saddled with late fees — because you never remember to pay bills on time — rarely check your credit card statements and often overdraw your account, since you don’t monitor your balance.
These poor habits can cause major problems down the road, so it’s time to invest in a wallet and get your finances under control. You’ll feel empowered when you know where your money is going and how much you have to spend.
This article was originally published on GOBankingRates.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
