Many people believe financial planning comes down to making sure their net income exceeds their total expenses. This mentality often leads to the same outcome of most diet plans; failure. Where did they go wrong? Most forgot to account for their money personality. If you find yourself to be one of these people, don’t feel bad. Many people have no clue what type of money personality they have. Here’s a little help to get you closer to identifying your money personality. Take a look at these four money personalities and see if one fits you.
(Disclaimer: Keep in mind; while you may relate to several of these personalities, one is usually more dominant than any others.)
The Chaser: Chasers are people that consistently attempt to acquire more wealth than someone else. These individuals perceive life as a race where first place is the only winner. This results in more financial risks being taken. They
determine their level of success based on the failures of others. They also
have a high regard for social status. People like Bill Gates and Warren Buffet
are used as barometers of success. They may often be heard saying, “I haven’t
made it because I’m still not on the level of…..” People with this money personality will relocate more often than others. Their insistence on social advancement will not allow them to live in one
setting for a long period of time.
The Builder: Builders desire to increase everything they acquire. These individuals may be considered rich, but want to expand their assets
as much as possible. They perceive life as an individual race with the goal of
beating an ever changing best time. They may often be heard using the phrase, “I am working to expand my empire.” These individual are semi-stable, but relocate more often than managers or victims.
The Manager: Managers desire to manage their assets with extreme care. Income level is not their major concern. When it comes to their career, they are inspired to advance, but not solely for the purpose of increasing income. They often use phrases like, “As long as I do my part, everything else will fall in place.” These people are less likely to frequently relocate and usually live a stable lifestyle.
The Victim: Victims consistently blame their financial failures on others and
circumstances. These individuals are not willing to do what it takes to change
their circumstances. They often perceive life as a fixed race and feel cheating
is necessary for victory. You may often hear them say, “It’s not my fault.” They
are semi-risky partners because of their lack of desire to change. Victims may
complain about their lifestyle, but will not take advantage of good
opportunities to improve it. These habits make victims a difficult spouse to
So, which one do you identify with the most? Remember to be honest with yourself and adjust your plans to fit your personality.
To learn more about money personalities and get other tips for good financial
planning, pick up a copy of my debut novel, “Did Everything But Think: D.E.B.T”
(Available on Amazon.com in kindle and paperback formats). You can also follow me on twitter @DidEvthButThink or through my Facebook page http://www.facebook.com/#!/DebtDidEverythingButThink.
Many people make the mistake of waiting until their children are pre-teens to talk about money. I’m not referring to simple conversations that cover how much change should be returned when money is spent. This is about deeper subjects like the U.S. economy, credit and cost of living. Some delay this conversation because of their lack of knowledge regarding financial matters. Others choose to depend on public or private schools to fill in these gaps. Whatever the reason, these conversations seem to be lacking in many households. If this sounds like you, I want to offer some assistance. I’ve put together a list of basic truths every child should know regarding this economy. These statements are not politically motivated or geared towards one gender. They are just important facts that I feel every child should know. Keep in mind, this is only my opinion and no list is perfect.
1. Poor people will always outnumber wealthy people. This is the simple truth of supply and demand. In a perfect world, everyone could obtain everything needed to live a comfortable lifestyle, but that’s a fantasy. People will always want more than they need and this results in an uneven distribution of resources. Sure there are other factors involved, but greed is the most common root of this truth.
2. The U.S. economy depends on debt. If every U.S. citizen paid off all their debts and refused to take loans, the economy would collapse. Lending institutions depend on interest income and will not be able to operate without it. The economy needs us to believe in debt and businesses will do their best to make sure we buy into this system. While it is okay to make some level of contribution to our economy, it is not good to be the biggest donor. (Side note: The bank that is responsible for printing U.S. currency and that lends to the government is a privately owned for profit organization better known as the FED.)
3. Graduating from college does not guarantee a six figure salary and neither does a post graduate degree. These degrees give us a better chance of obtaining high paying jobs, but there are other factors involved. We need to network and gain some level of working experience to increase the likelihood of obtaining these jobs. We also need to count the cost of obatining these degree's versus the costs.
4. Cars are one of the best and worst investments we will ever make. It’s a bad investment because the value will constantly depreciate. It’s also a great investment because most jobs require leaving our homes. We have to get to work somehow and depending on public transportation will limit job opportunities. Get a car, but never overpay for it.
5. Our financial habits are tracked. Credit reporting agencies are like probation officers. They will let the proper authorities know when we behave or misbehave. The more we are caught misbehaving, the less chances we will have to obtain money. through loans and it can limit our job opportunties.
6. Divorces are more expensive than marriages. Avoid these like the plague.
7. Social Security will not be around much longer. Unless some drastic change occurs, social security will not last another fifty years. It is better to prepare as if it doesn’t exist.
8. We will always have to pay taxes. Tax rates may rise and drop, but they will never go away.
9. Politicians will work hardest for those with the most money. Money equals influence in politics. The best formula for winning an election usually goes back to who spends the most.
10. When God is at the center of our lives, we will be alright in any economy.