5 Money Management Tips for ESTPs

According to the creator of the Keirsey Temperament Sorter, people with ESTP personalities are influential and make great entrepreneurs. Some of their personality traits can work against this entrepreneurial tendency when it comes to finances. To keep any problematic traits in check, use these five helpful money management tips.

1. Plan Purchases In Advance

It may not be possible to plan some expenses such as an emergency car repair in advance. However, purchases such as tablets, televisions and other non-essential items should be planned in advance. People with ESTP personalities are known for risky behavior, and that behavior often spills over into their spending habits. ESTP types can benefit from pre-made shopping lists. This lowers the temptation to make impulsive purchases. Question every purchase before making it. What would happen if the item is not purchased? Make a habit of limiting nonessential purchases.

2. Use Finance Apps

One good trait that can counteract an ESTP personality’s tendency to spend irresponsibly is attention to small details. A person with an ESTP personality can make a goal to track all income and expenses. This puts overall finances into a clearer perspective. Using personal finance apps is a good way to do this, and most apps have a variety of helpful features. Reporting features make it easy to see where money is going and how unnecessary expenses can be cut. Two useful finance apps are Mint and Level Money.

3. Invest In ETFs

A good way to put natural entrepreneurial skills to use is to start investing. Start with small periodic exchange-traded funds. Many companies such as Fidelity allow users to sign up and start buying shares without commission. With ETFs, it is easy to make long-term investments for low costs. This is a great option for recent grads and even students. Perhaps some of those invested funds grow and can help pay down student loan balances in the future.

4. Conduct Annual Finance Audits

Since people with ESTP personalities often spend too much money, it is a good idea to review monthly expenses each year. Make a list of all monthly, quarterly, annual and semi-annual expenses. Are they necessary for living? Rent, groceries, utilities and cell phone bills cannot be eliminated. However, unused and unnecessary memberships to movie clubs, magazines and other organizations may be cut. It may also be possible to downgrade to a lower cable package or Internet plan. Set aside the extra money from cutting these expenses to put into a savings account.

5. Set Up Savings Plans

It is best to have at least two different savings plans. Set up a savings account that is accessible for emergencies when necessary. Since ESTP personality types have a tendency toward impulsive spending, a good way to combat this is to also set up a long-term savings plan. A certificate of deposit or CD is a great tool for people with ESTP personalities. Choose a long-term CD with a term of several years to enjoy a higher interest rate. The higher yield is a good incentive to leave the money alone, and the stiff penalty for early withdrawal is another good incentive to let the money grow.

Managing money well and saving more now is a good way to prepare for retirement and live more comfortably. ESTP personalities are prone to great achievements when they put their natural drive to succeed to good use. The first step toward financial success is to earn a degree for a career that pays well.