Your Financial Personality is your unique set of traits and characteristics that dictate how well, or not so well, you manage your money. It dictates how you handle and think about money. It is your style of managing your finances - even if you are unaware of it.
Your personality is a huge factor in your Financial Behavior. I am not implying that your personality determines how much money you have. However, I am saying that it factors in to your financial picture. There is no one answer for why some people are more financially successful than others.
You are probably thinking that the way you handle your finances is either based on how you were taught or out of habit, but the truth is that it is more likely a direct reflection of your personality. For example, if you are a person who struggles with spending money, there is a good chance that this stems from a fear of being without money in an emergency. The opposite tends to be true for someone who has an Extrovert personality. They tend to take on too much debt because they want to buy or do something nice for their loved ones. Your behavior is a reflection of who you are and it shows in your finances.
Self-awareness is the first step in taking control of your Financial Situation. Your personality traits won't necessarily dictate your future wealth...but it will give you an idea as to what sort of lifestyle you want to live and will help you to make wise choices regarding your finances.
Understanding your Significant Other's Financial Personality will go a long way toward a happier and healthier relationship. Let's face it, couples fight. Knowing your S.O.'s financial personality will help you react appropriately when situations arise. You are not always going to agree, but you will be able to respond with grace and respect when you disagree.
What is your Financial Personality? There are six different types of Financial Personalities - The Spender, The Saver, The Dreamer, The Investor, The Optimist, and The Pessimist.
Which one applies to your current personal financial habits?
The Spender - Spenders are impulsive and impetuous. They are not great with money. They aren't good at saving, investing, budgeting, or managing debt. They spend on short-term pleasures and have trouble saving and paying debts long-term.
The Saver - Savers are a step ahead of the game in terms of saving money. They have a natural tendency to save money and focus on long-term goals. They have a savings strategy and tend to stick to it...even when temptations arise. They are practical.
The Dreamer - Dreamers have a good understanding of how to make themselves happy and they tend to know how to get there. They don't let their emotions dictate their financial behavior. They have a plan and they stick with it regardless of how much they want something else at that moment. Dreamers are intuitive and have a vivid imagination about ways to implement and take action towards their financial success.
The Investor - Investors are able to take advantage of investment opportunities when they come their way, even if they seem risky or complicated. They watch the markets to make sure that their investments are performing well and adjust accordingly.
The Optimist - Optimists believe that good things will happen to them. They find the silver lining in every situation and have a cheerful disposition. They are more likely than any other personality type to be successful financially. They save money, make investments, take calculated risks and have an overall handle on their money...including making money.
The Pessimist - Pessimists see an opportunity to save money on everything. They are not just looking for ways to save, they expect that there will be a reason to save. They are always thinking and looking for ways to cut costs and keep their financial picture healthy. They avoid risks and prefer to play it safe financially. They normally don't have debt problems because they don't spend frivolously. They are boy(girl) scouts of financial personalities - always prepared for the worst possible outcome and are ready for it.
Why is this important information? Knowing your money personality will help you to improve your overall financial picture.
How? Knowledge is power, right? When you understand why you behave in a certain manner, you can make a conscious decision to change your habits for the better. I always want to do and be a little better than I was yesterday. Understanding myself helps me to feel empowered in my decisions.
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