Did you know we all have different money personalities? This explains why we all know someone who despite her great job or thriving business, always needs to borrow some cash. On the other hand, we have friends who don’t have so much but are always able to get by….somehow.
Knowing your money personality is very important as it helps you determine how to save, plan and even invest.
So here we go….
1) The Hoarder: The hoarder sees money as a form of security. No matter how much a hoarder earns or has in the bank, she will always worry that she could make a decision and become poor tomorrow. This makes her hold on to her purse strings very tightly.
Traits: She is always looking for a bargain even when she can afford the recommended retail price!
Pros: The hoarder most times can support herself and doesn’t need to borrow.
Cons: The hoarder is so scared of bad financial choices, she misses out on great investment opportunities and life experiences.
Advice: Loosen up. Get some professional advice on great investment options and take calculated risks so you can increase your net worth.
2)The Spender: The spender sees “retail therapy” as the solution to all of life’s problems. She is happiest when she is buying things or having a fun experience, even when she can’t afford it!
Traits: She has the latest edition of everything but always has to borrow money for emergencies and essentials.
Pros: The spender often lives a fun life…..for a while!
Cons: The spender is most likely to end up in debt!
Advice: Budget. Stick to it and avoid temptations such as unnecessary loans. Plus you don’t have to take your ATM card every time you leave the house. Have a savings account you cannot access easily. This will help you develop self-restraint over time.
3)The Avoider: The avoider doesn’t want to talk about money. She doesn’t worry about it or think about it. She just believes tomorrow will take care of itself.
Traits: She piles up her bills till they are due/almost due and is never really interested in any business opportunity or extra sources of income.
Pros: The avoider doesn’t have to deal with money issues….at least not today.
Cons: One day, the avoider would have to face her money matters and then it may be too late to start planning.
Advice: Read about personal finance management and talk to a professional. Tomorrow will not take care of itself…You need a plan!
4)The Money Nun: The money nun sees the desire to amass wealth as unnecessary. She is quick to interpret ambition as greed and the love of luxury items as selfishness.
Traits: She often criticizes people who possess luxury items or display any form of opulence.
Pros: The money nun often supports a lot of worthy causes and gives to charity.
Cons: The money nun tends to undervalue herself and her earning potential. She is probably the last to ask for a raise at work or try to increase her profit margins in business.
Advice: Open up your mind to the possibility that you can become wealthy and still be a good person. Invest your money in projects/opportunities that have high social impact this way you are giving back as you are earning.
So what’s your money personality? Share this with someone who needs to know theirs.