Money Personalities
Everyone has a money personality that has been informed by their cultural background, the way they were nurtured, the way in which they first encountered a substantial amount money, when they began to experience or lose financial comfort etc.
How do you feel when you think about money?
Are you happy, excited, anxious, or hopeful?
When I went to university, I realised that there were many that just weren’t from my world. I saw money as something that was always going to be available and was more ‘free-handed’ than some of my peers. I found it strange to want to split every single bill equally (even amongst good friends) and that everyone had an individualistic mindset towards money. I thought that if my money ran out, I surely could just pick up a temporary or part-time student job and make some more to fund my luxurious life. I saw the world as a place where money will always be available for every and anyone to have access to.
I also always have been bold when talking about money- i didn’t grow up financially conservative and think paychecks and financial goals don’t need to be top secret. I also believe that the bank of mum and dad is a great thing and there is no merit to suffering and grafting alone to reach milestones.
I began to understand that people had been nurtured and almost indoctrinated towards different money mindsets and personalities.
Here are some examples of money personalities.
- Fearful Saver- Money is scarce, I always fear that my money will run out, I think saving enough for a rainy day should be the ultimate goal: common amongst people who grew up with money not necessary being abundant.
- Risky- I am fine with taking financial risks and making unconventional investments: common with people who have grown up having no shortage of money and just want more of it. They are ready to (cheaply) increase their stakes and can afford to take numerous financial hits.
- Over spender- I spend a lot of money regardless of what I am buying: Quite common amongst people who have begun to earn very well in adulthood, or they just frankly are stuck in the habit of not having a budget.
- Money comes and goes- I have an abundance mindset and don’t believe in holding on tightly to cash. Money is meant to be used for worthy causes: common amongst people who haven’t necessarily faced a lot of financial hardship but not uncommon amongst those who have.
There are many more money personalities than those aforementioned such as the avoider, status-seeker, opressoor etc.
The most important thing is that money personalities are not set in stone or unchangeable.
Your money personality informs the goals you set in life and the risks you take. A fearful saver will usually stay on the straight and narrow and go for jobs and opportunities at or above the average threshold- they do things as they should and follow rules; a fearful saver will sometimes neglect his own needs and avoid spontaneity in order to save for a rainy day. An over spender never really seems to be liquid no matter the size of their paycheck; they don’t need to value their purchases, it is simply for the thrill. A person with a risky personality will usually dive straight into quick money-making schemes, alternative crypto currencies and go for opportunities that are just too good to be true while people in the money comes and goes group tend to be more entrepreneurial.
I believe that the best cocktail of money personalities will be a smooth blend of the Money comes and goes and a bit of a Fearful Saver- with an affinity towards investing. To not be intimidated by or worship money but to see merely as a resource to buy your freedom should be the ultimate goal.
Before setting financial goals, it is important to confront yourself and investigate how you feel when you think about money. What is your money personality?
My Favourite things
What I have been Reading:
Outliers (The story of Success) - Malcolm Gladwell- Success is not as random as it seems, the month year and location you were born in alongside the cultural shifts thar happened during your college days all have a part to play in your success story. It got me thinking a lot about how entering the workforce during a pandemic has affected my mindset towards work and why I am focused on impact. In the absence of the fancy office buildings and corporate distractions, it is what truly matters, and I might end up doing much more meaningful work during my career simply because of I started my career during a pandemic. Gladwell has an amazing way of making you feel like the intelligent fact cruncher.
The Quote of the week- ‘Wealth consists not in having great possessions, but in having few wants.’ –Epictetus- I believe that if you ponder enough on your material wants, you’d realise that you might not truly desire them. We should all strive to keep our wants genuine to retain wealth.