What’s Your True Financial Personality?
The handling of one’s money is not as simple as spending a part of what you earn and saving the rest. It will not come as any surprise that everyone has their own way of handling their money but what might come as a surprise to you is that each person’s handling of money depends a lot on their personality. An individual’s financial portfolio is more reflective of their emotions than anything else.
The easiest way of finding out how a person handles their money is through the Myers-Briggs test that classifies people as extroverts and introverts and further divides them into narrower segments on the basis of:-
- Sense vs. Intuit
- Think vs. Feel
- Judge vs. Perceive
The 4 Key Financial Personality Profiles
Since there are 16 categories that this test divides the people into, expert financial planner Ray Linder conveniently grouped these 16 detailed categories into 4 broader categories, namely – Protectors, Planners, Pleasers and Players.
Today, we will present an in-depth analysis of these four financial personality types to help you discover the category you belong to and identify your strengths and shortcomings in handling money efficiently.
- The Protectors
These are the people for whom a safety net is the greatest requirement. These people do not take risks at all, they always plan ahead, save according to their post-retirement needs. They are so non-adventurous that they never try any new brand while shopping. They mostly even eat at the same restaurant. Basically, they are always extremely careful when it comes to spending money and do not like to spend unnecessarily.
While this may seem like the ideal personality type, it is not. Such behavior restricts them to indulge in a bit of fun now and then. They probably never even plan holidays or take a break from their work life.
This could lead to a lot of problems because such behavior also restricts them from making a few risky investments which could prove to be profitable. And let’s not forget their families who are always complaining and can become a cause of major marital issues.
- The Pleasers
Pleasers are of two kinds – the ones who like to please themselves and the ones who like to please others. They could also be both and identify themselves as caring. Now, their connection with money is the way they spend it.
They believe that the things that they spend on are an extension of their own identity. Being a pleaser to an extent is alright; however, you must be wary of others willing to take advantage of your pleasing nature. Pleasers tend to forget the difference between wants and needs.
- The Planners
Like the name suggests, they plan ahead and think of themselves as smarter than the crowd. They are the ones who are most likely to make huge long term investments; however, they keep tracking their investments on a daily basis to know how much they are making every day.
Being a planner is mostly good except you tend to miss out on some amazing opportunities in the present because you are too busy tracking your future.
- The Players
Players are, well, players. They live in the moment and their way of spending money could also be called playing with money. They never think long term and are extremely compulsive. They are risk takers who might end up taking even the risks with a hit rate as low as 10%.
Taking risks is good to an extent but being overly optimistic might be financially detrimental.
These are the four broad personality categories when it comes to money management. None of them is the best or the worst, but each of them have the potential to become dangerous if allowed to run rampant. All in all, self-moderation is the greatest financial optimization trick we can pull to elevate our financial status.