What is money? And why must we struggle to acquire? Is it really so important?

The answers to these questions vary with people. But the most general and applicable notion is that in the modern world, money is not just printed papers and coins. It represents joy, love, and even power. It encompasses even emotions and if money was just about printed papers, our money issues wouldn’t have been so difficult to solve. There wouldn’t have been any problem about not having enough money to make the ends meet and whatsoever.

For understanding the issues we are experiencing with money today, it is important for us to go back and understand what money really means to us. Rather than just going back, it is also crucial for us to comprehend the meaning of money taken by our parents because they have a large influence on us.

Let’s talk about you, for instance. In your family, what did money represent? How did you perceive money when you were growing up? Did you consider money an important resource or not? It would be better to ask, did your parents ever had a fight concerning money? Do you think that money and happiness are related?

If you answer these questions and note them, you will have an epiphany of how you feel about money.

When it comes to money, we all relate to it in a number of ways and it depends largely on how we were brought up, the society in which we live, our friends, and our living standards. All of these factors make up your money personality. Just think about your relationship with money. How does it influence your finances and what does money mean to you? When you need to make a financial decision, how do you behave?

Finding the answers to these questions will help you in determining your money personality and traits. You might think, why it is necessary to know this money personality?

Well, understanding it can help you significantly in making better financial decisions. For instance, you can even invest and save your money if you are sound and sensible in making decisions.

Are you interested in knowing your money personality now? Continue reading and you will find out quickly.

Spenders of Financial Planning for Canadian Women

For spenders, purchasing things is quite common. They buy different things to feel validated, loved, and even important. A common trait among spenders is that they don’t think twice about purchasing a specific thing. Rather than that, they just buy the thing. Regardless of the money they have, they purchase the object on which they set their sights.

If you are a spender and need to control your spending, you must set some limits. And you must never break these limits. Keep an eye on your behavior and note all the things you buy in a day in your diary. It will help you in finding where you are usually spending more money. In addition to it, you should make a budget and put your credit cards in a locket. Each and every week, you should stick to a weekly budget and follow it.

Hoarders

Unlike spenders who purchase to feel respected, hoarders perceive money as a means of obtaining security. Even when they have a large sum of money, they will be careful in spending a little portion as if it might make them poor.

For improving your finance, you should take small and wise steps before you loose up. It is always necessary to take some risks when you make investments. If you come to understand that some small risks need to be taken in investments, you will not fear them anymore.

Avoiders

Avoiders are just disinterested in money. They believe that there are many other critical issues than worrying about money. In fact, they might not even know about their bank balance because they are too indulged in other tasks.

Well, it is better if you change your mindset quickly. In comparison with other issues of life, managing the daily finances is not that bad.

Monks

The last personality is monks who believe that money is evil. They have a firm belief that the root cause of every evil is money and that they must stay away from it.

If you are a money monk, it would be better if you remind yourself that money is not that bad. Rather than being evil, it helps in maintaining a shelter for yourself, help people and friends, and support other good causes. For managing finances in a better manner, it is important to put your money in bank and allow monthly deductions.

Your relationship with Money

When it comes to money, we all have some unique stories. We never got to choose our own because our choices were influenced by our upbringing and perceptions of our parents.

For instance, how we manage, spend, and earn money is significantly how we experienced money while we were growing up. If I talk about myself, my experiences are still within me. If you are extra-conscious about leaving the lights on, it might be because your parents focused on saving electricity and money.

Our personality type combined with our money experiences create our money personality and every single person has this personality.

The Dimensions of Money

There exists a three-dimensional relationship with money, according to Eileen Gallo. These three dimensions are concerned with how we are actually earn money, how we spend our money, and how we manage our money. For each dimension, there are extremes and the middle one is the most balanced one.

Earning

Earning is concerned how we acquire money. At the left side of this spectrum are people who perceive money as something to be shared with all people. Meanwhile, at the right side are people who are never satisfied. For them, money is a score and they must have the highest score in order to win. They might even step on people if it serves a way of obtaining money.

Spending

In general, this spectrum is about how we spend or save money. In this spectrum, people at the left are close-fisted people who save money even when they don’t need it. In fact, they can do anything but spend their money. And at the right are individuals who are unable to hold on to their money. Even when they don’t have money, they are likely to purchase a thing or two.

Managing

This spectrum is all about how we are organizing money and it includes different processes such as investing, tracking expenses, and paying bills.

At the left of this spectrum are the people who are bent upon managing even the last penny. They have had this habit of tracking every expense since they were in middle school. Meanwhile, on the right are people who don’t care even a little about money management. For them, working forty hours a week is normal.

Now we should begin with the next part.

Understanding your Relationship

Your relationship with money depends largely on your upbringing and how you perceived money in your childhood. If you have read the above given information, you might already know your money personality.

Now, we have countless possibilities related to money. From childhood to adulthood, we have to make certain decisions about money. In order to understand your relationship with money better, it is important to comprehend the given dimensions.

Acquisition

This dimension is not concerned with how you obtain money but much wealth is necessary for you. Therefore, when it comes to the acquisition of money, you can insatiable or even avoidant.

Spending

With the acquisition of money, another question arises which is concerned with what to do what that money. In order to effectively spend money, it is important for us to understand what we should be doing with it.

Managing

The management of money covers almost everything from managing investments to paying bills. In simple words, the management of money is concerned with making sound and sensible decisions about spending and saving money.

These are the dimensions which help you in understanding your personality type. Still, you have to understand it yourself. And whenever you make financial goals, you should always ensure that you are:

Realistic:  It is important for you to make realistic goals. You must be sure that your goals can be achieved and sometimes, you might even have to make short-term goals and achieve them before making long-term objectives.

Specific: You should set some specific dates for reaching your goals and acquiring objectives. In order to monitor progress, you can attach dollar amounts to your goals.

Visualize: It is quite critical for you to think about your objectives. If you need to motivate yourself, just imagine achieve your objectives and celebrating.

Influence of Parents on your Relationship with Money

You might think that you don’t have a particular relationship with money but that is not true. The relationship between you and your money was formed during your upbringing. It was majorly influenced by the values which were instilled in by your parents. If you want to make this relationship your own, it is important for you to comprehend how your parents still influence your financial decisions.

The Money Story of your Family

The money story of your family shapes the behaviors, beliefs, and attitudes that you utilize in your financial life. Your childhood experience was particularly influenced what your parents used to say about money. This experience created set of beliefs of patterns which influence your money.