| Money Personality |
|
|
When we think of types of personalities we may relate this to people we know and their overall personality ie bright, shy etc. However we all have a money personality and it can have a great bearing on the way we handle money.
These are various types of money personalities.
Show Off (Look at Me!)
People with this money personality usually have the urge to spend and look to create a feeling of success. They seek prestige or status which can translate into large flashy purchases.
The look of success is the number one priority.
A problem they have is their inability to afford the constant nature of their spending. They rely heavily on their credit cards which often are used in expensive restaurants and reputable stores. They sometimes like to carry a lot of cash which can be displayed for all to see and rarely budget their finances.
Being seen as successful is very important and therefore they like to fit out their homes with fine furniture. Also important is earning a large income. They love to tell people how much they earn and how much they paid for certain goods
Budgeting is quite foreign to them which can make them feel unsuccessful. On the other hand spending money is the opposite making them feel successful as they can impress others.
To improve their financial position will not be easy for the 'show off'. Establishing a financial plan that includes short and long term goals is a start. Concentrating on some money100 articles will help. The best ones are:
Also to watch some of the other money personalities and observe how they handle their money.
Shopper
Shopper loves the shopping experience and just can't say no when presented with numerous buying opportunities.
They love the stimulation of looking and buying new items.
No single item would be considered a major purchase but the sheer quantity of items bought takes a significant toll. This is different to 'Show Off' who spends large amounts of money on a few items.
'Shoppers' live for today and therefore struggle to save. Preparing a budget is very boring and rarely successful because they don't have long term financial plans. Paying bills is also boring and often paid late.
Unlike some of the other money personalities who use some of today's income to invest, the shopper usually thinks of short term spending. Assets like houses & cars are almost always financed with minimum deposits.
They believe the purpose of work is to spend on shopping expeditions and seek fun and excitement with money.
To improve their financial position will not be easy for the 'shopper'. A path similar to 'show off' is required.
Establishing a financial plan that includes short and long term goals is a start. Concentrating on some money100 articles will help. The best ones are:
Planning of your day will now be required to minimise the chance of being near to shopping centres. You may have to work on a new hobby, recreation or pastime that can replace the enjoyment of shopping. When you do go shopping have a list beforehand of what to buy and stick to it.
Two Minds
'Two minds' have conflicting desires that clash with each other causing constant change of behaviour. As a result they can be slow to make decisions whether it is for spending or investing. They may have ideals that are against wealth on one hand however enjoy the comforts that good income and spending can provide.
Matters regarding money are unorganised whether it is paying bills, saving or investing. Even having a rainy day account causes conflict. How to determine what qualifies as an emergency?
The urge to splurge one minute, then crave to save the next.
They may have been raised by individuals with two opposing money personalities.
Some times they go without items for extended periods until they feel utterly deprived and go on a shopping spree.
They have no plan or organised purpose to spending or saving and some do save some money, but inadequate amount for any major benefit ie retirement.
'I'll get my money figured out later' is a comment that 'two minds' may be familiar with.
Their spending patterns are not regular and usually will spend more when with people, than when alone.
To improve their financial position will require 'two minds' to acknowledge that money is important and there are benefits of long term saving ie comfortable retirement and not having to rely solely on a government pension.
Just like the previous personalities establishing a financial plan that includes short and long term goals is a start. Concentrating on some money100 articles will help. The best ones are:
These articles have a greater emphasis on setting up money systems that are automatic.
Mover
Mover is constantly on the move. Their day is full of different activities ranging from work to family to community/sports projects. They are on the go. They spend so much time on these important areas and spend almost no time on ensuring their financial matters are in order. And as for retirement planning forget it. You see one reason movers diary is so full is because they get bored easy. You won't see them enjoying a lazy few hours reading a book, however you will see them using the remote control on the television!
You also won't see them going from one shop to another comparing prices before deciding what to buy. When they see something that grabs their attention they buy it immediately. This is their problem they are very much money unconscious. They have no interest in money itself and find it boring. If you asked a 'mover' whether having sufficient money to retire on was important they would almost always agree it was. The difficult part for them is getting around to work on their financial position. After all they are so busy doing important things!
To have a long term financial system that works it must match their behaviour. It must be simple to set up, understand and monitor. As they are often not the most organised they will not be able to implement and manage a normal budgeting system (see our traditional budget). Our automatic budget is a better option for the 'mover'. If in a relationship with a 'mover' it may be best for the other partner to control all things money! They will most likely be very happy with this arrangement.
To improve their financial position we recommend reading:
In addition it would be worthwhile watching how other people handle money.
Modesty
Modesty lives ultra conservatively to demonstrate virtue and tend to earn smaller incomes. They may feel guilty if they keep or earn too much money and are uneasy talking about money. A belief some have is that it is wrong to be well paid for work you enjoy. They can be outspoken about rich people believing they must have ripped good people off to get there. People like themselves who are nice. They can also think of themselves to be superior to those with wealth. They reject any urge to spend and almost always search for low prices. Their savings are for a rainy day or to replace items like their car. They expect to live on the age pension in retirement.
That they may be missing out on certain activities that they may enjoy is a sacrifice they make. To get ahead: Modesty should consider the benefits of earning extra income and planning for their retirement so that they are not so dependant on the aged pension. There is certainly nothing wrong with living a frugal lifestyle as outlined in our subsection "It's ok to be frugal" . Don't forget to have a bit of fun!
To improve their financial position we recommend reading:
Stressor
"Stressor's" are cautious types and particularly so where money is concerned. They are reluctant to spend for fear all their money will disappear no matter how much they have.
To overcome their fear of being poor they save their way out of their financial worries. They love to budget and peruse all bank statements including credit card to see where their money has gone and ensure there are no bank errors. They can be very good planners and have a clear picture of how much money they will have in 6 months time and even 6 years time! They always pay their bills on time or early.
Stressor struggles to enjoy the money they have saved. Others can't be trusted with their money and therefore they can miss out on earning good returns on their money. If they are partnered with a "show off" or "shopper" this would create severe conflict. For a stressor to change they may need to think that spontaneity is not irresponsible and that it is ok for them to splurge occasionally. After all they can't take it with them. To improve they could relax a bit with their monitoring of finances and review all finances at the end of the month rather than weekly. They could also pay bills twice a month instead of as soon as the bill arrives. It would also be worthwhile to see a Financial Adviser to ensure their investments are working as hard as they should. Enjoy the present.
Careful
Carefuls love to save. They also hate debt and will do what ever they can to pay off their loans faster. Most of carefuls loans are paid off early. They love making extra repayments from overtime, tax returns etc. They believe having large amount of debt is irresponsible and may feel superior to those with debt. They love to track their money and do this religiously a couple of times per month. Saving is more important than spending is a core belief of a careful personality. When they do spend big they will do the research to ensure they get value for money. If they have a weakness with their money skills it is that they are reluctant to obtain financial advice.
This can be because they can't justify paying for advice. The result often is their money is invested in conservative investments like bank term deposits rather than other investments like shares and property. As a result their financial position may not be as strong as it may have. To improve:They should consider reviewing their financial position to ensure their investments are working as hard as they should be. Maybe they need to enjoy their money a bit more. After all you can't take it with you and your children may have a different money personality to you. If this happens and they inherit your money they may spend it in ways that you would not appreciate it. Consider reading:
It also is worth reading as many money books as you can that specialise in investments. Greater knowledge in this area will provide more confidence and should result in better returns on your investments.
Savvy
Just like careful savvy likes to save. The difference is that savvy looks to accumulate wealth by making their money work as hard as they do. They manage their investments themselves by doing the appropriate research however will seek advice when required. Investing is a hobby for most people with the savvy personality. On occasions they can become over confident in trying to beat the markets by turning over shares quickly or investing in shares which are not as well known like smaller companies or mining shares. They are very ambitious and won't be satisfied until they have enough return on their investments to stop working. Even then they will continue to actively manage their investments as they get great satisfaction from investing.
Unlike the careful type they are not afraid of debt as long as it is for investment purposes. They can feel superior to others based on their wealth. They are not against spending as they like to enjoy the benefits of their labour. They are not interested in shopping for its own sake. To improve: The savvy personality is one who is probably on the way to a comfortable retirement. To ensure this happens they must review their investments regularly to see the portfolio is balanced and they are not taking unnecessary risks.
They could also take on a mentor role to assist family and friends in increasing their wealth.
|
||||
