Everybody has a unique way of approaching their personal finances. This is often based on what we learned from our parents, as well as a combination of our unique life experiences.
But did you know that your financial personality could, in fact, be defined? We have a look at a list of financial personalities, and we consider the importance of knowing your own.
Tip: Every financial personality has its struggles. Get debt consolidation if you’re in a pinch.
What are the financial personalities?
According to Reagan Mitchell, being aware of your financial personality and how you approach various aspects of financial management will definitely stand you in good stead.
“You can imagine that there are a plethora of financial personalities simply based on the complexity of human behaviour,” says Mitchell.
He explains that a company known as Hadeda has attempted to simplify financial personalities into 10 different categories, as follows.
- Adapter: Most scores for this personality type fall under “moderate”. Those in this category can easily adapt, based on the unique situation they’re in. For example, they can work well with either fixed or flexible goals, depending on the situation.
- Community Builder: This is the strongest relationship-building personality among them all. Members of this category are outgoing and can collaborate with peers and leaders.
- Engager: This personality is fantastic at networking, and likes to spend time around people. Members prefer to work with a financial adviser or another person, such as a family member, when it comes to their finances.
- Facilitator: Cautious when it comes to making financial decisions, this category leads by example, and strives to get things done. They enjoy group decisions, and they prefer structure and stability. Therefore, they would not take huge investment risks.
- Influencer: Members of this group relate well to others, but they can also be very direct about what’s on their mind. They are impulsive when it comes to their money, so they should work on being more strategic.
- Initiator: This category is goal-orientated and is a risk-taker. Initiators naturally take the lead, whether they have permission or not, and they are rational about their choices.
- Reflective Thinker: As their name suggests, reflective thinkers spend a lot of time focusing on the details. Quiet and analytical, they are often risk-averse, and they are cautious about their money decisions.
- Relationship Builder: This group is patient and wants to help and work with people. They have a lot of empathy, and they are good listeners.
- Strategist: This category is comprised of planners, who spend their time creating systems and processes. They think ahead, and they choose the best road forward. They don’t act impulsively with their finances, and they take their time.
- Stylish Thinker: Perfectionists, with a good creative eye, strategists will work with others, but they’re also stuck in their own heads. Their good communication skills help them take charge of their carefully considered thoughts.
Some financial advisers make use of financial personality tests to help them better assist their clients, and manage their money according to their unique style.
“Understanding your financial personality and that of your spouse or business partner will improve the overall relationship, and the financial decisions and outcomes of your shared interests,” says Mitchell.
“Everyone has a unique financial personality, each with their own biases and blind spots. Doing a financial behaviour assessment could help you improve your awareness around these,” he explains.
Any financial personality can struggle with debt. Get debt consolidation today to sort yours out.