Money Mindsets, Like roles on a Sports Team

Think of your money like a sports team. Not every player has the same role. Some take big shots, some defend the goal, and some keep things steady in the middle. That’s where risk profiles and money mindsets come in.

Your risk profile is like your playing style. Are you cool with big swings for the chance of higher rewards? Or do you prefer stability, even if the gains are smaller? That’s the difference between growth assets (shares, property) and defensive assets (cash, bonds). Some people are okay with big swings in value if it means the chance for higher long-term returns. Others prefer steady, predictable growth, even if it’s smaller.

Your money plays different roles, just like a team.

Different Money Mindsets

Here’s the smart part. You don’t need just one mindset. You can choose different styles depending on your goal. As an example, some people choose:

• Long-term goals (like saving for future plans): Can play a higher-risk role, because time helps smooth out short-term ups and downs.

• Short-term goals (like money you might need soon): Usually play a safer role, so it’s there when you need it.

By giving each “bucket” of money its own role, you create balance across your team.

The Profiles Explained

Providers define them differently, but here’s a general guide to how growth vs defensive assets often split:

·       Defensive: Mostly defensive (70-90%) with little growth.

·       Conservative: More balanced but still cautious.

·       Balanced: Roughly half growth, half defensive.

·       Growth: Heavily growth-oriented (70-90%).

·       High Growth: Almost all growth (90-100%).

Takeaway

Your money can play more than one position. Some parts aim for big wins in the long run, while others focus on steady defense for the short term. Understanding these risk profiles is about knowing the roles, so you can see how different money mindsets can work together on the same team.