Here are several questions to help you determine your money personality, plus four ways your money personality can help you save money.
Your personality affects how you think about money – especially your saving and spending habits. These money tips go beyond being a “saver” or a “spender” – it’s about knowing how your personality and childhood affects your ability to invest money, save money, spend money, and create financial abundance.
Below are are a few questions to get you thinking about your money personality, plus four tips for making your self-awareness work for you.
“Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.” ~ Franklin D. Roosevelt.
This is why happiness and self-improvement gurus encourage us to do what we love. Because we’ll enjoy our life more — and we’ll create more financial abundance. If you’re struggling with debt and money problems, read Why Smart People Make Big Money Mistakes And How To Correct Them.
Questions That Reveal Your “Money Personality”
- When is the first time you remember money being talked about in your family when you were growing up?
- When growing up, was money a source of tension in your household?
- How would you like money to be treated in your household today?
- When you hear the word “money”, what are the first three things that come to mind?
- What are your “money absolutes” – the things you feel in your heart are vital to your financial peace of mind?
- How do you define financial success?
Think about your answers to these questions, and discuss them with your partner if you’re married. Your answers can reveal a lot about your relationship with money – and your relationship with your spouse!
The source of these questions is the money book for couples, Get Financially Naked: How to Talk Money with Your Honey.
How Your Money Personality Can Help You Save Money
If you aren’t sure whether you have introverted or an extroverted personality traits (which are unrelated to your money personality), read What an Introvert Really Looks Like: A Personality Test.
1. Think about how your parents’ investment style affects your money personality
Did your parents invest in real estate, mutual funds, or a secure low-interest savings account? Your saving and spending habits, investment style, attitude about money, and financial perspective is shaped in part by the way your parents treated money in your childhood. To create financial abundance and wealth, you may need to differentiate your money personality from your parents’ financial attitudes.
2. Determine your motivation for creating financial wealth
What are your short and long-term goals for investing your money? Do you want to retire early, buy a home with a view of the ocean, or pay for your kids’ college education? Before you attempt to increase your earnings, figure out your motivation and goals. Knowing where you want to be in one, three, five, or ten years will help you get there!
3. Recall and relive traumatic experiences that affect your relationship with money
In The Investor’s Quotient, Jacob Bernstein writes, “Very often traumas during early childhood or elementary school days will have an unconscious effect during adult life.”
He suggests reliving bad experiences in an unthreatening environment to release pent-up emotions. This can free your emotional and mental energy, and allow you to more effectively focus on your financial investments – which can translate to making more money in mutual funds, stocks, and bonds.
4. Explore how your relationship affects your investment strategy
If you’re married or in a committed relationship, your perspective of money and your partner is part of your money psychology.
“Very often the married male investor with children will be operating under the weight of heavy responsibility, which may paralyze him,” writes Bernstein. “Too frequently we fear negative responses from a spouse.” To create wealth, make sure you and your partner have a common purpose.
The source of these personality, money, and investment tips is The Investor’s Quotient: The Psychology of Successful Investing in Commodities & Stocks.
What is your money personality – and how does it affect your saving and spending habits? I grew up without money and as an adult I tend to hoard my money. I don’t want to end up with no money and no financial security! Do you have a similar or different money personality?