Find your money personality. Four questions to ask yourself.
- Everyone has a financial personality. Identifying yours can help boost your finances.
- Identifying your money strengths and weaknesses is a great first step to determine your financial personality.
- Gain self-awareness that will help you prioritize, make changes and achieve goals.
You know financial well-being takes time and effort, especially as you near retirement. But with hectic schedules, it can feel almost impossible to carve out the time. Even if you have all your systems in place, you may still wonder about the decisions you've made.
These feelings are perfectly normal, says Kathleen Gurney, Ph.D., founder and CEO of Financial Psychology Corporation and author ofYour money personality: What it is and how you can profit from it."Everyone has a financial style and a financial personality," she adds. "When we recognize what about our personality works for us and what is getting in the way, we can make changes that will help achieve our goals."
To determine your financial personality, ask yourself these four questions:
Question 1: What's really happening in my money life?
Ask yourself this important question, suggests Gurney — not what you wish would happen or don't want to admit is happening but what is really happening. If you don't like what you see, know that you can change. The only way your money situation will improve is if you improve your self-awareness.
Ask yourself this important question, suggests Gurney — not what you wish would happen or don't want to admit is happening but what is really happening. If you don't like what you see, know that you can change. The only way your money situation will improve is if you improve your self-awareness.
Question 2: What are three things I'm really proud of?
Find three aspects of your finances that stand out. Perhaps it's the growing contributions to your retirement accounts, the fact that you've put your kids through school or the diversified portfolio you've built. What about your money personality made these three achievements possible? Give yourself a pat on the back, and keep those three attributes in mind going forward. Write them down occasionally if you need to. Think of these qualities as your internal financial coaches.
Find three aspects of your finances that stand out. Perhaps it's the growing contributions to your retirement accounts, the fact that you've put your kids through school or the diversified portfolio you've built. What about your money personality made these three achievements possible? Give yourself a pat on the back, and keep those three attributes in mind going forward. Write them down occasionally if you need to. Think of these qualities as your internal financial coaches.
Question 3: What do I need to improve?
After you identify your money strengths, take a look at personality traits that may be holding you back. Are you afraid to make investment decisions even when you have an advisor to help? Do you put off important financial tasks? Are you having trouble not overspending? Identifying three things helps you stay focused. "When you look at your overall financial picture or what you think you need for the future, it can be overwhelming," says Gurney. The instinct is to just give up. "But, focusing on three things is neurologically doable and completely effective." The reason? Small steps taken on a consistent basis can lead to huge gains over time.
After you identify your money strengths, take a look at personality traits that may be holding you back. Are you afraid to make investment decisions even when you have an advisor to help? Do you put off important financial tasks? Are you having trouble not overspending? Identifying three things helps you stay focused. "When you look at your overall financial picture or what you think you need for the future, it can be overwhelming," says Gurney. The instinct is to just give up. "But, focusing on three things is neurologically doable and completely effective." The reason? Small steps taken on a consistent basis can lead to huge gains over time.
Question 4: When is the best time for me to focus on my financial well-being?
With busy home and work schedules, it's easy to put off dealing with finances. "Ask yourself why you're putting something that is so important to you on the back burner," says Gurney. Of course you're exhausted when you come home from work, so find a time that will work for you, she suggests, and use that time to put yourself and your financial well-being first.
With busy home and work schedules, it's easy to put off dealing with finances. "Ask yourself why you're putting something that is so important to you on the back burner," says Gurney. Of course you're exhausted when you come home from work, so find a time that will work for you, she suggests, and use that time to put yourself and your financial well-being first.
By taking a fresh look and assessing your money strengths and weaknesses, you'll be closer to understanding your financial personality. With this knowledge, you can more easily prioritize and make changes — which can help you achieve your short-term and retirement goals.
Work with your Ameriprise financial advisor to develop a well-rounded strategy that fits your financial personality.
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