What is your money personality?
In two or three words, how would you describe yourself?
Extroverted, charming, or daring?
Are you reserved, cautious, or serious?
Are you optimistic or realistic?
Whatever you say, chances are that others do not see you the same way. In fact, even though most of us believe we are self-aware, we are not. That means that most of us have no idea who we are, where we fit in, or how others perceive us. And most of us don't have a deep understanding of our own strengths and limitations — or how our unique personalities distinguish us and affect our relationships.
Why should you be concerned? Because if you're lacking in self-awareness, you're probably lacking in other areas of life as well. That, by the way, does not apply only to our personal and professional lives. It also affects our financial lives. Each of us has a distinct financial personality. We all have different reactions to and feelings about money. And if we aren't in touch with our emotions, we won't be able to make the best financial decisions.
So, how much do you know about your money personality?
Let's find out by looking at the various money personality types and how they naturally use and react to money. #1: THE BUSY BEE
Money Superpower: Giving your all to your work and your money-making endeavors Personal Pitfall: Always putting work and wealth ahead of your relationships and experiences Most Likely to: Be One of the Hardest Working People in Any Room; Do the Extra Work to Get Ahead Financially
#2: THE SAVING SQUIRREL
Saving money and squirreling away wealth, even if you have no plans on how to spend it
Letting a fear of "losing" or spending money prevent you from ever really enjoying it
Most Likely to:
Know the Best Rates, Deals, Bargains; Have the Biggest Rainy-Day Fund
#3: THE LAVISH LION
Showing your generosity and treating others and/or yourself to the finer things, even when there's no "occasion"
Giving into lifestyle creep, going overboard, and losing site of financial options that could be better than spending right now
Most Likely to:
Be the Life of the Party, Take Risks, Be the Best Shopping Buddy #4: THE INDIFFERENT IGUANA
Money Superpower: Not sweating the small stuff financially, not stressing about money, and being resilient to uncertainty Personal Pitfall: Not thinking about money when making important decisions or starting to think of money as "evil" Most Likely to: Think Money Isn't the Key to Happiness
#5: THE CONCERNED CAMEL
Keeping a close eye on your money and planning for worst-case scenarios
Obsessing about losing or running out of money or letting your fears get in the way of opportunities to enjoy life or level-up your wealth
Most Likely to:
Know Where the Exits Are in Any Room; Have Backup Plan for the Worst-Case Scenarios
How Your Money Personality Can Help You Achieve Your Financial Objectives
So, which money personality best describes you? Whatever else, keep in mind that there are no "good" or "bad" types.
And many people aren't defined by a single "type." Actually, most of us have a mix of several different "types" when it comes to money. Concentrating on those types will help you identify your natural financial strengths and weaknesses. That is the only way you can truly begin to understand how to improve your financial well-being, make better financial decisions, and give yourself a better financial outlook.
What difference does knowing your money personality make? Assume you're a Saving Squirrel or a Busy Bee. Instead of socking away every penny or remaining in worker-bee mode all of the time, start putting money and time into meaningful experiences that will enrich your life. If you're more of an Indifferent Iguana, you don't have to start thinking about money all the time — but you should be aware of where your money is going.
And if you are more like the Lavish Lion, you may want to practice conscious spending before you splurge on the big things.
What's the bottom line?
Book smarts alone may not make you a better money manager. And it might not be the only key to staying on track with your major financial objectives.
Knowing the ins and outs of your money personality is important too. So is the right plan and being able to get advice from people you trust. Sincerely,
Paavan Kotini, CEO & Principal Advisor Kotini & Kotini https://kotiniandkotini.com (804) 372-8307
P.S. What risks are you willing to take to achieve your full potential in life? Hear Jeff Deckman share his story of how it gave it his all despite the potential of almost losing everything: https://youtu.be/ZjpyiWtCFuc