Personality plays a big role in every aspect of our lives; it helps shape how we form and behave in our relationships, what we choose to study and which career we end up going for and like all the other things how we choose to spend our money also depends greatly on our personality.
Only when you have fully understand which personality type you come from can you actually understand and then control your investing, spending and saving habits.
Which Personality Type Would You File Yourself In?
Just as your social personality is either classified into an introvert or an extrovert, there are a few key money personality types, some of them are mentioned below.
What you need to do here is analyze your behavior and recognize your type which will bring you one step closer to understanding how and why you spend, save or invest your money.
- Are You a Lavish Spender?
What would best describe lavish spenders is their love for purchasing lavish i.e. expensive objects, such as new cars, the latest gadgets and branded clothing.
If you currently own the widest TV, the latest cellphone, a fast and fancy car then you can easily classify yourself as a big spender. Other qualities that make lavish spenders who they are, is the fact that they don't fear debt and often make risky investment decisions.
A Piece of Advice
If you have been a big spender from the start chances of you completely changing your behavior are slim to none, however, this doesn't mean that you can't alter your behavior into something more favorable.
When you go for buying something expensive think of the item's long term value, don't just buy something because it's new and shiny think of the future benefits you could get from the item.
And if the benefits weigh more than the cost, then just go for the purchase as this way you won't regret reaching into your wallet.
- Are You a Compulsive Shopper?
If purchasing something can make your heart skip a beat and make your pulse soar then you can classify yourself as a compulsive shopper.
Compulsive shoppers basically get emotional satisfaction from shopping, which is why they shop again and again even if they can't afford it sending most of them completely in debt.
A compulsive shopper is someone who gets excited when they hear of new deals coming in the market, they become highly excited with the mention of the word sale and run to each and every sale that they can manage.
These personality types don't shop for items because they want to use them; they do so just for the rush of owning something new.
To fully understand a compulsive shopper personality type, look into watching Confessions of a Shopaholic.
A Piece of Advice
The only valuable piece of advice for compulsive shoppers would be that they simply shouldn't spend money that they don't have.
Before you pick up an item and bring it to the counter, think to yourself, “Do I really need this?” and if the answer is no, simply place the item back on its shelf. Another good thing to do would be to go on a shopaholic's anonymous meeting.
- Are You a Debtor?
If you think your finances often get out of your hand and you end up spending more than you planned without really thinking about it, then you can be classified as a classic debtor.
Not someone who loves to spend their money, just someone who doesn't really think twice about spending their money and so often find themselves in a financially compromising situation.
A Piece of Advice:
If you are a debtor then all you need to do is sit and think hard about your financial decisions. Another good thing would be to start considering investing in good ventures.
Once you start thinking about your finance decisions, your debt problem will soon be solved.
- Are You a Smart Investor?
If you are someone who takes their investment decisions seriously and instead of frivolously spending your money on luxury objects, actually sit and think about viable investment decisions, then, congratulations are in order because as far as the financial food chain is concerned you are on the top.
A Piece of Advice
As far as advice goes, for smart investors there is none because they are already making smart financial decisions, just keep up the good work!
Just keep tabs on the upcoming investment options to make sure that you continue doing what you are best at.
Identify your financial personality type and if you fit into the first three categories just try to follow the advice and alter your personality for the better.
