OBG: b&b129 How your personality affects your wallet Part 1

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Before you can even get your money stuff together, you need to understand your relationship with money first, and to do that, you’ll need to know what your money personality is and how your personality affects every aspect of your finances.

We’ve spent the last two years honing and refining the money personalities we discussed all the way back in Episode 1. The 4 money personalities:
– Worrier
– Avoider
– Amasser
– Money Monk

And how each personality deals with income, budgeting, credit, debt, saving, etc. and what strategies you can use that speak directly to your relationship with money.

Episode Highlights:

Dyalekt: Cars are waaaay more expensive if you’re poor. …Insurance costs–actually just charges you more for being poor.

Dyalekt: I don’t want you to get this confused: an Amasser with a go-getter who makes the most money. An Amasser is simply someone who uses the next thing they’re going to pay for, their last thing. Pam: Right, you know the person who’s already spent the paycheck that they haven’t gotten yet, in their heads?

Dyalekt: Again, this is not a diagnosis of some sickness that you can cure. That’s not at all what the money personality is about. It’s not about choosing one for yourself that sounds like the best thing and striving to be like it. It’s understanding your psychology…It’s not about fixing you. It’s about understanding where you lean, so that you can make sure you stand upright, whatever room you’re in.

Pam: Just because you’re an Amasser doesn’t mean you’re rich, doesn’t mean you’re a millionaire. It just means that you are someone who thinks, “If I just have a bunch of money, then my problems will be solved.” That doesn’t mean you have a bunch of money.

Pam: It’s not a matter of fixing any of this. This is going to be your tendency, and it’s not a good thing or a bad thing. It’s just something to be aware of.

Pam: If you understand what your partner’s money personality is, and understand how you compliment each other, then you’ll be able to balance each other out in situations where you find yourself not knowing what to do or needing some kind of big financial decision to be made.

Pam: We think about the way that we deal with money in such a negative way, and there are so many positive things that have to do with how we deal with money that we don’t think about and we don’t emphasize. But, the reality is you have this tendency because it serves you in one way or another….Keep that in mind as we go through these. It’s really about recognizing what things you, not necessarily wanna change about your money personality, but what you need to acknowledge and what you might need to adjust to keep your money personality kind of in line.

Pam: A worrier can react in two different ways: either you don’t have any savings ‘cause you’re so worried about making sure all the other people you owe money to is taken care of, of you save too much, to the point where you’re not enjoying yourself. You’re not actually even covering your needs, your basic needs, and everything feels a little harder, a little more miserable, but it’s okay because one day you’re gonna need that money and you’re gonna be like, “Haha! I got it! I got you!”