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What Are Your Financial Strengths and Weaknesses?

By Adam Shalvey

  • PUBLISHED October 28
  • |
  • 10 MINUTE READ

The next chapter of our Save Like a Hero partnership shares the story of Marvel Studios’ Eternals as they reunite to protect the future of humanity.

Marvel Studios’ Eternals, which you can experience in theaters on November 5, is about the heroics of individuals, but also about a team coming together (and out of the shadows). The Eternals may be ancient heroes who have been living on Earth in secret for thousands of years, but they still have to deal with their own personal strengths and weaknesses as they reunite to battle the Deviants, mankind’s ancient enemies.

While you likely haven’t been around for a thousand years, you have also probably taken stock of your personal strengths and weaknesses. But have you considered your financial strengths?

When it comes to recognizing what you excel at and where you need support, remember to be honest with yourself. Your finances belong to you, and if you bluff that you are strong in an area, you will only be hindering yourself.

That said, which of these strengths do you have, and which could use more work?

Strength No. 1: Freezing
Thinking about how long you could go without spending a single dollar. Could you make it through today without buying anything? We all need to spend money, but could you freeze your spending on nonessential purchases (that dinner at a restaurant; that new pair of jeans) for a week or a month?

The ability to freeze spending and consider your money actions—and their consequences—will help you to plan for the long term and budget accordingly. But remember that a spending freeze doesn’t have to feel like an all-or-nothing, drastic step. This is a strength that you can use surgically instead of as a blanket action. It could be as simple as freezing out a particular part of your spending, such as nixing that fountain soda when you stop for gas.

Strength No. 2: Judging Risk
Off the top of your head: How comfortable are you with risking your hard-earned money? Would you be more comfortable keeping a higher percentage of your savings in cash rather than potentially losing money in the stock market? If you did invest in stocks, would you rather invest in a small company that could grow (or fail) or a larger, established company that is unlikely to lose value but may see only modest gains? 

Risk is the possibility that something bad will happen, and in the case of financial risk that bad thing is almost always losing value: stock prices drop, the market tumbles, or inflation eats up the spending power of your cash. Financial advisors have tools and tests to help you judge your risk tolerance, but if you want to build this strength on your own, take time to learn more about financial risk in general, and start asking yourself questions about how you might react to losing money on an investment.

Strength No. 3: Decoding Financial Lingo
What is the difference between FDIC and FINRA? Money has its own language, and by learning it—or at least some key terms—you can better see how specific products and services may benefit your money and financial health. If you are wondering how financially savvy you are, start out by taking our quick quiz “Do You Know Your Banking Terms?” 

While our quiz is a good starting point and a gut check for your abilities, you should also take deeper dives into the specific financial topics that interest you. Read these guides on credit cards, investing and banking.

Strength No. 4: Staying on Budget
Can you create a budget and stay on top of your savings and spending? A budget could be as simple as jotting down your weekly earnings and spending on a scrap of paper. Or it could be more complex, such as a budgeting app that can track your money to the penny. 

Setting up a budget is one strength, but the potentially harder task is sticking to the budget you set up. This can be especially difficult to maintain over long periods of time, as we all have busy lives and can lose focus sometimes.

If building and staying on a budget has been a weakness for you, this is one skill to work on. Focus on consistency, and start the process by doing a spending analysis, where you just look closely at your last month of spending. That will give you a baseline that will help you judge your use of money going forward. Build your budget from there.

Strength No. 5: Saving Money
It happens all the time: we set money aside over time and slowly watch our bank balance climb north. But, then something comes up—an emergency or a shopping trip to blow off steam—and our balance suddenly drops.

Saving money can be a fight against willpower, but luckily there are tools available to you to help bolster your savings abilities if you consider this a weakness. Set up automatic transfers that will send a portion of your paycheck into a savings account (and out of sight). Set up a high yield savings account that will allow you to earn interest on your savings. And, if you need help gauging how much you should be saving each month, use a savings calculator to help you meet your goals.

Strength No. 6: Staying on Track towards Goals
Establishing your financial goals means looking at the short- and long-term of your life. What do you want to accomplish next month, next year and in 20 years? For most people, saving money for retirement is a big, long-term goal, but besides that we all have different needs and wants. You may want to buy a new car next year, or max out your child’s 529 Plan for college tuition, or build generational family wealth.

The ability to set goals requires a vision for the future, but the strength to stay on track takes patience and fortitude. Instead of thinking about decades of saving money, think about what you are accomplishing—the small wins of saving over time. Celebrate those small wins as you go.

Strength No. 7: The Ability to See the Future
While none of us can see the actual future, being prepared for whatever comes down the pike will make it seem like you did. Not only will there be expected costs, like vacations, but there will also be unexpected costs, like flat tires or lost income. The good news is that you can save for both types of costs so that you won’t need to rely on borrowing money or using credit cards.

Building up an emergency fund can take time, so make sure it is itemized as a part of your overall budget. Set up a separate savings account for the fund, so you won’t be tempted to dip into it for everyday spending, and save a small amount each week. Most experts say three to six months of expenses will work for most people.

Strength No. 8: The Ability to Change
Your financial life is a part of your actual life, and it should evolve over time as your needs, wants and future change. Be adaptable, but keep an overall focus on your strengths and weaknesses.

Have Weaknesses? Build Your Financial Team
If there is a particular area where you think your financial capabilities or know-how could use a boost, there are ways to build those weaknesses into strengths in the same way you might build muscle by using it regularly. But, here again, use caution because there may be some skills that you simply will never excel at—for those skills, seek support by adding someone who can help to your “financial team” of advisors, friends and banks.

Financial advisors can help you focus your long-term thinking about your money, and also help you with investments. Your bank can help you save better by offering you the best options for savings accounts or services (and insights, like this article). And remember that your friends and family may be able to help fill in any gaps in your knowledge of ability as needed.

Adam Shalvey is a financial writer living in Rhode Island.

How much do you need to save each month to meet your goal? Use our calculator to find out.