How would you describe yourself in two or three words?
Extroverted, charming, or adventurous?
Reserved, cautious, or serious?
Optimistic or fair-minded?
Whatever you say, there are really good chances others don’t see you in the same way.
In fact, even though most of us think we’re pretty self-aware, we aren’t.1
That means most of us don’t really know who we are, how we fit in, or how others see us.2
And most of us don’t have a really deep understanding of our strengths and limits — or how our individual personality sets us apart and affects our relationships.2
Why should you care?
Because if you’re falling short in the self-awareness department, you’re probably coming up short in life too.1
By the way, that’s not limited to our personal and professional lives.
It also extends to our financial lives.
Each of us has our own money personality.2 We all react to and feel differently about money.
And if we’re not really in touch with those emotions, we’re not going to be able to make the best moves with our money.2
So, what do you actually know about your money personality?
Let’s find out by taking a look at the different money personality types and how each one naturally uses and reacts to money.
Your Fast, Fun Guide to 5 Different Money Personality Types
#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
Money Superpower:
Saving money and squirreling away wealth, even if you have no plans on how to spend it
Personal Pitfall:
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
Money Superpower:
Showing your generosity and treating others and/or yourself to the finer things, even when there’s no “occasion”
Most Likely to:
Giving into lifestyle creep, going overboard, and losing site of financial options that could be better than spending right now
Personal Pitfall:
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
Money Superpower:
Keeping a close eye on your money and planning for worst-case scenarios
Personal Pitfall:
Obsessing about losing or running out of money or letting your fears get in the way of opportunities to enjoy life or level-ip your wealth
Most Likely to:
Know Where the Exits Are in Any Room; Have Backup Plan for the Worst-Case Scenarios
FINANCIAL LESSON:
So, what money personality describes you best?
Whatever it is, remember, there are no “good” or “bad” types.
And many folks aren’t defined by just one “type.”2
Actually, most of us have money personalities that blend at least a few different “types.”2
Zeroing in on those types is how you get to know your natural skills and Achilles heels when it comes to finances.
And that’s the only way you can really start to figure out how to improve your financial wellbeing, make better financial choices, and give yourself an even better financial outlook.2
How does knowing your money personality help you do any of that?
Well, let’s say, you’re a Saving Squirrel or a Busy Bee.
Instead of squirreling away every penny or staying in worker-bee-earner mode all the time, start investing some money and time into meaningful experiences that enrich your life.
If you’re more of an Indifferent Iguana, you don’t have to start thinking about money all the time — but make it a point to know where your money goes.
And if the Lavish Lion characterizes you better, you may want to practice conscious spending before you splurge on the big things.
The bottom line?
Book smarts alone may not make you better with your money. And it may not be the one key to staying on track with your big financial goals.
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.
Sources:
1 – https://www.betterup.com/blog/what-is-self-awareness
2 – https://www.cnbc.com/2021/04/28/7-money-personality-types-and-the-pitfalls-of-each.html
Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.
This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.
