POSTED BY June 15, 2011 COMMENTS (33)ON
Do you know what your money personality is? Now you must be thinking what is the meaning of “Money Personality”? Let me give you a hint! . Ajay earns a lot of money, but his financial life is not that great, the main reason is that he is too conservative with his investments and all his money lies in Fixed Deposits and Cash in the Bank, that’s all. This happens due to his internal design of being a “Saver”. His life is all about saving and only saving and there comes his money personality. Let’s explore more on this.
We have identified that each one of us have a money personality which we develop during our life and all our actions are driven by our money personality, even our financial life is driven by it and the product we choose, the way we look at each and every aspect is result of what money personality we have. Over the last few years, when we interacted with dozens of clients and thousands of readers like you, we identified that each one of us can be categorised in following money personalities which we will discuss today.
Watch the following video which Me and Nandish has recoreded for you all .
The first money personality is “Spenders”. People who fall in this category have an attitude that “Life happens now”. They will spend their money all over which makes them feel that they are “living” the life. They will buy expensive gadgets, eat out at expensive places and will make sure that they are not at all compromising on enjoyment. The behaviour also affects their financial life; their savings are not as much as it can be because most of the leftover money at the end of the month is saved. The simple rule of Savings = Income – Expenses is applicable for these people. Most of these people dont have much left in their bank account by the end of the month and they wonder “Where does it all go? ” .
The next personality is that of the “Savers”. These people believe that life is all about saving and for being prepared for the future. They are not exactly misers, but they appear like misers to others. Whatever can save money for them looks attractive to them. This behaviour also enters their financial life and they invest in anything which claims to save money to them. You can also attach the word “Safety” with these people. They invest in Fixed Deposits , Reccuring deposits , bonds , debentures and other investments which are safe avenues. These people like to buy stuff if it claims to save money to them .
The third and an interesting category are of “Avoiders”. These people are great avoiders, when it comes to taking actions, they will not spend or save, and instead they will just avoid the situation and find all the reasons in life for delaying things and avoiding it. They read, talk and learn about everything, but don’t apply it to their life in any way. I personally think that a lot of us are like that. There are even many readers here who are learning things from months/years, but still they have not done anything with their learnings, they just read and feel happy that they know something good, but where is the action?
The last category is really a different one and often forgotten, that is of “Saints”. A person who belongs to this category feels that money is an unimportant thing in life. His beliefs would be “Money is not important thing in life”, “More money is more trouble”, “Life is all about being Happy and content” and “You just need bare minimum and satisfaction to lead a happy life”. While that all is fine, these people over react and don’t give much importance to money in life. Most of the people who talk like this are those who really can’t make a lot of money and deep down they themselves are worrying for money, but they make sure they show themselves as not-interested-in-money kind of individuals.
So which money personality is better than the other and how to make change in your personality? First thing is that there is nothing bad or good about having one of these money personalities. These personalities get into us because of various reasons in life and it’s not that easy to change them. What’s important is that you need to be aware about your personality and how it’s affecting your financial life. Try to find out how your money personality can help in having a financial life which you desire.
What do you think about these personalities and which one are you ?