Saturday, February 4, 2023

Money Personality: What’s Yours?

December 8, 2022 by  
Filed under Money, Opinion, Weekly Columns

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( In order to grasp the importance of financial literacy, it has to be understood that money is another relationship that must be maintained. Maintenance requires attention, care, focus, and discipline. To maintain a thing you have to be aware of it and know it’s patterns, values, and purpose. Your relationship with money is no different.

The first step to true financial literacy is being aware that handling money is a relationship and then finding out what your current relationship with money is. There are four different types of relationships with money, often referred to as Money Personalities. Once you are able to figure what your money personality is you can make better financial moves keeping your relationship in mind.

To start on the journey to becoming financially literate a decision must first be made once your financial personality has been figured out. A decision to change your money personality or to use your current personality to your advantage. Any personality can be used as an advantage as long as you are willing to study it to fully understand what your personality is.

4 Money Personality Types

“Where’d My Money Go?” (spender)

This one is largely self-explanatory. More often than not you are not aware of where your funds have trailed off too. You get paid one day and the next you’re wondering where exactly it all went. You often pay bills ahead of time when you can because you know that there is a possibility that if you wait until it’s due the money might not be there.

The phrase “paycheck to paycheck” is a literal description of your financial position because even when you think you know, you just don’t know where it’s all going. You typically don’t have anything in your savings, spend impulsively, and have credit card debt.

Tip: One way to make sure that you are setting funds aside to invest in yourself financially is to have your check, deposit, etc., be automatically split from the time it is sent out. This is an option that most employers offer, you just have to check with human resources. It’s also best when those funds go into an account that isn’t attached to your online banking so that you don’t always check it and transfer funds when your main account gets low. It will allow you to put money aside for investing without having to think about it until you have figured out where exactly you will be investing your funds. Out of sight out of mind.

“A Rainy Day WILL Come!” (hoarder)

You want ALL of your money and don’t want to spend it unless absolutely necessary. You are not one to spend for the sake of spending and you definitely are not into brand names enough to spend your hard-earned money on them. You save whenever you can and are often considered to be cheap but your preferred term is frugal. If there is a deal you’re cashing in on it and often might not shop unless there is one. Can you say coupons? You can! You are also in touch with your financial budget and are very aware of where every coin is being spent.

Tip: Since you already value your money, research. Pick three to five investment opportunities and do research on each. Create a list that spells out the pros and cons of each. Compare the list for each opportunity and decide which would be best for you. Since you have now deemed it to be of value and worthy of your money, set aside a percentage that you are comfortable with and start the process.

The second tip is to enjoy your money every now and then. Saving is great but you also need to have a period of relaxation to feel as if it’s all worth it and not be tied down by always making to save and not live. Remember that life is to be lived.

“Is That Survival? I Can’t Take That Ride” (security seeker)

This personality is very similar to the hoarder except your motivation is quite different. Instead of saving and being frugal with your money because you value it, you are saving and being frugal due to a fear of being without it. This is typically for individuals that grew up with an extreme lack of money. You work really hard to increase their income whenever you can and only spend it when necessary so you can keep it and not have to experience the lack of having anymore. So you value money but not more than you value what it represents, not having to be without.

Tip: Create healthy boundaries that you can indulge in but if it does not pan out it won’t affect you in a way that will cause a major shift in your financial status. You want to create boundaries or parameters for when you will and when you won’t make a financial decision. For example, a parameter can be if the opportunity requires more than X % of your savings capital than you won’t entertain it. This helps you monitor your fear of being without and not spend time on things that you know don’t fit your personality.

You also want to make financial goals and guidelines as well. For example, you will only allow yourself to invest after you have reached a savings goal of X amount of money that covers all of your expenses for X amount of time. This will allow you to be secure in your savings but also leave you open to be able to invest and grow your money.

“STIFF Arm” (avoider)

You just don’t like to think, talk, or see anything that has to do with bills, money, or a budget. Bills will go unpaid due to you not opening the mail for the bill. You know you need to pay them but you just don’t want to deal with it unless it’s absolutely necessary, most often last minute. Making financial decisions is not for you. You would prefer to hand off the decision making then to make the decision yourself. If there is a conversation about money, you won’t be found in it.

Tip: Change your perspective about money. A lot of what you are experiencing is a mindset blockage. You either don’t believe that finances are important or don’t want to deal with the dread of finances. Either way, a shift in your perspective and thoughts about money will help you be more responsible and find ease when dealing with your finances. Think of money as a means to set your life up to be the way that you want and the more that you are aware, plan, and are accountable for it, the more you will be able to do with and in your life.

Money is not the big bad devil but it can be if you look at it that way. Create a financial schedule. One day of the week or month where you focus on your finances to start off. This means that you will not have to worry about it otherwise – unless an emergency comes up – and all of your bills will be on autopilot because a part of your time spent on finances is your budget. Also, use this time to look up some investment opportunities that you would like to be a part of and make it one of your bills that you need to pay.

Knowing your money personality is essential to creating a financial plan, generational wealth, and living your ideal life. If you don’t know how you’ve been conditioned to look at money, you can’t know how to move forward with getting more of it. You are in control of your money, not the other way around.

Staff Writer; Sister Victoria X

One may also follow this sister over at; SVX.

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