Everyone has a money personality or combination of 2. You typical favor more than the other. Your money personality describes your relationship with money. I am a saver, but if you look at my mountain of mail, you'll see that I'm also an avoider… to a certain extent. Like everything else in life, you want to make sure you're not being extreme in any particular area. Balance is key to happiness, peace, health, and even wealth.
What do you think your money personality is? Are you missing the necessary balance in your finances?
We can talk about me first…
Savers are typically responsible with their funds. But they can also become money hoarders. It's good to save money, but it's also good to let go of some too. Savers tend to hold on to their money so tightly that they are afraid to take risks and miss out on opportunities that could possibly make them even more money. Another common trait amongst savers is that they don't believe in splurging on themselves. Everyone deserves to be pampered every once in a while.
Now being a saver isn't all bad. Savers are frugal and can spot a deal a mile away. They are always open to ways to save money. This is definitely someone you want on your side when you're looking to cut corners in your spending.
However, to create that much needed balance, savers should learn to lighten up. More specifically, if you use the Millionaire's Money Management jar system (MMM), as a saver, you should put 15% of your income in your PLAY jar… and actually spend it… all of it… every month. Until it doesn't bother you to spend it. (The extra 5% comes from the necessity jar)
Spenders are typically the opposite of savers. Spenders spend money just because. They live by the YOLO code (You only live once!) Shopping is usually their emotional scapegoat… hence the term “retail therapy”. Spenders shop to avoid or numb frustration, anger, sadness, boredom, etc. When the going gets tough, the tough go shopping! Many times spenders can be identified by their bad credit scores, lavish toys, and overstuffed closets.
Spenders' much needed balance can be attained by trying a few simple tricks.
Journal- write down how you're feeling and what you're spending your money on everyday. You can gain a realization of what you're actually spending your money on and why. Stick to your budget! If you don't have a set budget, use the MMM jar system.
Avoiders basically avoid the subject of money altogether. Avoiders are the exact people mail-in rebates were designed for…. they never mail them in! These are typically the people that never open their mail (guilty), don't really look at receipts, pay taxes at the very last minute, and don't care to budget or discuss expenses. Finances tend to trigger fear and confusion in their minds so they do everything they can to avoid those feelings. Because avoiders don't pay a lot attention to their finances, many times they think they have more money than they actually have, causing even more financial burden.
There is hope for avoiders though. To create balance in your financial life, just like any other area, you have to face your fear. Simply spending more time paying attention to money matters will slowly open you up to the idea of money being important. To decrease your money anxiety start with a small exercise like dividing pennies into jars to represent the idea of budgeting. It may seem frivolous but it will help you become more comfortable when dealing with money as well get your mind accustomed to the idea of dividing/budgeting your money. Soon you will be an excellent money manager!
Lastly, there are the Money Monks who believe everything is spiritual. They couldn't care less about money, it's not important to them. Money monks are always giving money away. After all, money is the root of all evil. These are the people who believe you're a better person if you don't have money and banks are the devil. They also tend to physically loose money due to their carelessness.
To create balance in the life of a Money Monk, you should find an income path, preferably passive, that serves your life's purpose. Money can do a lot of good in this world including providing food, clothing, shelter, and education for you and those less fortunate.
What is your money personality? I hope you use some these tips to create more balance in your relationship with money.
Peace and Love.
For more great ways to build a better relationship with money and increase your money zone, attend a Millionaire Mind Experience near you. Click here for their schedule.