- Personal Finance»
- Understanding Finance
How Finances Relate to Your Personality
What You Need to Understand About Yourself May Be More Important
than What You Need to Know About Finances
For every financial decision there are psychological factors. Finances are where materialism and emotional feelings converge. Attitudes towards money affect the decisions we make, the way we behave, and our lifestyle. There is a connection between our unconscious thoughts about money and the way we interact with it. There are many things to understand about finance, many ways to earn and save dollars, and there are many professionals who can give you good personal finance advice. But the most important thing to understand about your finances, is having a healthy financial self perception. What does money do to you? Are you comfortable with the way you handle money? Do thoughts of financial success create good feelings or fearful feelings? Do you sabotage your financial well being? Do you think of yourself as prosperous, or poor, no matter how much money you have? Does money validate something inside you, or do you need to spend it? Picking a financial advisor will help you make more educated financial decisions, but they need to match your money personality. Are there things holding you back, that even a financial advisor can’t help you with?
It is important to understand your basic money and finance philosophy. When you meet with a financial professional, it is a good idea to talk to them about your spending and saving habits. Pick a person who listens to you, not someone who is just telling you what they know and what they want you to do. A good match will help you learn how to make decisions about your finances with the consideration of who you are, where you are going, and what you want from your finances. All these are good financial tools to use … and then there is the YOU factor to consider. What does money do to you and for you psychologically? Paying attention to your money personality is an important contributing factor as you consider your financial strategy.
Understand Yourself and Understand Your Finances
Have a Healthy Money Personality
There is more to know about personal finance than you may think. Managing money takes intelligence, a sense of savvy, an ability to make right choices, a little bit of economic luck, discipline, and an inner psychology that allows you the enjoyment of prosperity. There are many professionals in the industry who hold titles, certifications, and licenses as advisors to help you with understanding finances. These professionals are more than ready to assist you with your financial decisions. There is where intelligence comes in. Smart people know what they can’t do. They know where they need help about their finances and seek out expert advice, or educate themselves thoroughly. The right professional advice is part of your financial success.
- This is the first step to get a healthy money personality. Picking the right person to guide you is crucial for your financial future. Your “intelligence” comes from educating yourself about who the right person is to help you with your monetary advice, and through self education. Knowledge about finances will give you financial power over your money and your decisions.
- Know your own needs and desires for personal wealth. Make sure you match your needs to who you truly are.
- Being “savvy” is being smart about what you do with your money. It is most important to know the truths you tell yourself about our thinking about money. There are things you need to understand about yourself so that you can get where you want to be financially.
- It may also be a good idea to talk to a mental health therapist about your feelings and money. We all have feelings about our success and what money means to us. If you feel like you are holding yourself back, a professional mental health counselor can help you get "unstuck". You can learn a lot about yourself and through this self exploration, you may begin to have a healthier attitude about your finances.
Good Qualities for Smart Decisions About Finances
You and Your Financial Advisor Should Be a Good Match
Your financial advisor needs to match you on several levels:
- your income level - you don’t want to hire someone who has millionaires as clients when your net worth is much lower.
- make sure they listen to your needs and tailor a strategy that fits your immediate and long term needs
- know what they charge and make sure it is a comfortable fee level for you
- know their experience and what type of financial specialty they have.
- what services do they supply
- make sure they are not just in the business of selling you something like stocks or insurance. You want to make sure their advice is relevant to your needs.
- make sure they ask personal questions that help them know you. What is your lifestyle, your current and future needs? What are your dreams? You want to deal with someone who wants to shape your financial future for your needs, not for their needs.
How Your Mind Thinks About Money Will Affect How You Mind Your Money
Financial advisors can help you manage your money. They can give you the best advice, but if your money personality compels you to act differently in the short or long term, you won’t benefit from the professionals.
Sometimes we hold ourselves back from getting what we think we want. What do you really want for yourself? What do you want from your finances? Let the messages you tell yourself, be positive ones. Give yourself permission to deserve good things, to enjoy your successes. Look to be contented and satisfied with who you are and what you have at this moment. Spend time appreciating what you do have. Look for the gratitude in small things. Be humble, but know that you are a great person too. Be kind to yourself, and kinder to others.
Understand yourself and understanding finances will come easier to you. You can and will gain greater financial security for your future. Mind your money, but also understand what your mind thinks about money.