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How Finances Relate to Your Personality

Updated on September 8, 2012

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 can have the intelligence to make the money, save the money, and invest the money so that it grows and grows. You can be savvy enough to know how to save the money and invest it wisely. You might have made the right career choices that allow you to make enough money. You might have had some luck to win the lottery, or gain a large sum of money. You might have the discipline to stick to budget. All or any of these are  good qualities that will help you to gain financial freedom.  Any single quality, or combination will help you achieve financial gains.  But no matter what you understand, no matter what you know you need to do, the most important quality you need to have is an understanding of yourself.  Grasping the simple and complex aspects of finance is an integral part of money success. Understanding your own behavior and motivations and perhaps self sabotage is even more important to making smart decisions about finances now and in the future. Having money and being successful has a lot to do with feeling that you deserve financial success.  When you feel good about yourself, you will gravitate towards people who will advise you wisely, and you will make the right decisions about finances for yourself.

You and Your Financial Advisor Should Be a Good Match

To get a better understanding of investment choices and money wisdom, interview several financial consultants prior to committing to any one individual. Try to find this financial wiz by getting recommendations from people you know and trust. Look for someone who has the credentials and certification that shows they are reputable and have attained a level of expertise.

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

While  you ruminate about who is the right financial professional to guide you, consider your money personality. No matter what you do, what choices you make, or what advice you get, your success financially depends greatly on the money and self connection you have. For most of us, money provides a sense of security. It gives us the ability to provide for our families and our future.  According to Maslow’s heirachy of needs, we all need basic physical securities like shelter and  food for basic survival.  Money provides this. And money is an integral part of nearly every aspect of life around the world. However, people want more than just the basics in life. Herein enters an understanding about finances and the desire to obtain personal wealth.  We look for opportunites to gain financial successes. Money means different things to different people. Some have a lot of money, but feel like they don’t have enough.  Some have little money, yet are content with what they have. Some have money and always spend, some spend even when they don’t have. Some don’t spend even when they have. These habits are reflections of our money personality.    

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.

Where did you get your messages from?


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    • toknowinfo profile image

      toknowinfo 7 years ago

      It is amazing how strong a part our personality plays into every decision and action we do. It is important for us to be mindful of ourselves in all aspects of our lives, including financial thinking.

    • Simone Smith profile image

      Simone Haruko Smith 7 years ago from San Francisco

      You are so right that one's finances are at the whim of one's personality, emotions, and general psychological mindset - how cool that you are addressing the topic so directly! Great Hub - and great niche topic!