What do personality types have to do with money?
Well, I have two kids and over Halloween I give them two identical buckets which they fill by going from house to house. By the time we get home my son, bless him, has eaten or given all his lollies away and complaining of a sore tummy. My daughter, however, still has a bucket of lollies to add to her ones from last year.
What’s the link between lollies and money? Well, you could replace the lollies with money and the above scenario would have the same outcome. In other words, how you relate to money will influence your overall financial position.
Why is this important? Figuring out your money personality can influence and change your behaviour when it comes to how you save, spend and invest.
I have come up with 4 simple types after studying countless online tests:
Type 1: Miss Security
Miss Security personality type hoards money and takes as little risk as possible. No matter how much she has, she always feels some disaster will leave her destitute and penniless. This may be you if:
- you enjoy checking your account at the end of the month to see how much you have saved,
- you have a love affair with deal sites and want to share all the bargains with your friends,
- you keep all your money in the bank
My advice is to get rewards it is necessary to accept some level of risk. So, if you are looking to invest you must try to understand the risk reward trade-off between different types of investments. The investment you choose must have the potential return on it to achieve your goals but not have the level of risk that leaves you sleep deprived! We can leave that job to the kids…ha-ha. Start slowly and expand into other types of investments as your confidence improves.
Type 2: Miss Spender
Miss Spender equates buying ‘stuff’ with feelings of love and importance. That latest pair of Jimmy Choos or latest Miu Miu handbag are symbols of respect and self-worth even though they may not be able to afford them. The phrase “I deserve it” is often a repeated mantra as the debt on their credit card slowly increases. This may be you if:
- you know you don’t need it but…
- when having lunch with your girlfriends you feel the need to shout the bill,
- you love to ‘wow’ everyone with your fabulous home, car, gifts and so on
My advice is to try to understand where you are haemorrhaging cash, devise a budget and stick to it! Smart phone and tablet budget apps are amazing for this. If your credit card is playing the devil’s advocate, cut it up and use a weekly cash allowance.
Type 3: Miss Avoider
Miss Avoider feels overwhelmed or may be completely disinterested when it comes to money. She has no idea what comes in or goes out, how much she has in her bank account or in her superannuation account. The less she knows about her financial situation is for her the better. This may be you if:
- you have an underlying sense of dread about your finances but feel less empowered do anything about it regardless of the will to want to,
- you dodge making financial decisions like the plague when possible,
- just talking about money can make you feel completely uncomfortable
My advice is to get an understanding of the basics of finance – even if it’s from your child’s school subject book. On a side note – it should be a subject taught early on, from primary school. Understanding your finances gives you an enormous amount of security. You also could be missing out on opportunities that you may not realise exist. And let’s face it – why shouldn’t your money work for you?
Type 4: Miss Holy
Miss Holy feels the pursuit of money is evil and may find the concept distasteful. She believes that money should not define who you are and what you do. She may perceive rich people as unhappy and their values slightly skewed. This may be you if:
- You know that you are possibly being under paid, but can find a hundred moral reasons why you shouldn’t do anything about it
- If you come into some extra money, you choose to be charitable with it – giving it away to family, friends, charity…
- Often pursue the path with less financial gain based on your moral high ground or perceived standards.
My advice is that having money and making your money work for you has tremendous power to do good. Look at Bill Gates…Money can be used to support causes that you believe in and help people who are less fortunate than you. Put together a clear plan and budget for all the wonderful causes you feel would benefit financially from your help and aim for that. Don’t forget to make sure your own needs are taken care of as well.
So, there we are folks, it is interesting to think about how the impact money, sound financial understanding and knowledge has a ‘snowball’ effect on our lives and how we choose to live them, particularly as women.
Want to learn more about making your money work for you? Get in contact with me.