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But by learning about the attributes of the common financial personalities, you can reveal your own tendencies and be able to answer the question: What’s my financial personality? No one person will match one of these belief systems 100%.
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From that data, Klontz says they identified four primary financial behavioral patterns. He has worked with fellow researchers to collect data from thousands of people to analyze their subconscious beliefs about money. It’s this gulf-the difference between what people say and what they do-that has motivated Klontz in his research over the years. Uncover the most common financial personalities You can also transform your beliefs into steps that will help you manage your finances. Learning to understand your financial behaviors can help you to spot ways in which you may unconsciously undermine your best efforts to improve your financial life, such as by saving or investing, Price says.Īs you learn what your financial personality is and reflect on what type of spender you are, you can begin to understand why you spend a certain way, even though you say you want to do otherwise. Or perhaps you want to prioritize saving for long-term financial goals, but you’re leaving extra cash in your checking account instead of transferring it over to your online savings account. Maybe you say you are focused on building up your emergency savings, but you still overspend on clothes or travel instead of diverting that cash to your emergency fund. Understanding your relationship with money means digging deep into your money patterns and behaviors as well as what you learned growing up, where most behaviors are formed, Price says. The problem is that many people have blind spots and cannot easily understand these dynamics without guidance and support, she adds. “The best financial plan, or the best investment advice in the world, isn’t a substitute for understanding one’s own relationship with money,” says Deborah Price, CEO and founder of The Money Coaching Institute and author of “ Money Magic: Unleashing Your True Potential for Prosperity and Fulfillment.” Once you understand what your financial personality is, you can begin to change your behaviors, whether that’s your everyday spending habits or your long-term savings plan, Klontz says. Let’s explore why it’s important to understand your money beliefs and dive into the most common financial personalities: What’s the value of knowing your money personality?Īs a leader in the emerging discipline of financial psychology, Klontz-along with others in his field-has made the case that in order to improve your financial outlook, you need to understand your underlying financial beliefs. What’s your money personality? Uncover how your own beliefs are shaping your financial behaviors by taking this money personality quiz, inspired by Klontz’s research.
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Along with a team of researchers, he has developed a rigorous assessment to help people determine which money belief they are most impacted by. He has come to realize the importance of decoding people’s money beliefs-the subconscious ideas, typically learned in childhood, that drive their actions. “Sometimes those massive changes happen just by getting another piece of information, either from inside you or from somebody from the outside.” Try this money personality quizĪ desire to understand how money shapes people’s beliefs and actions has informed the last 25 years of Klontz’s career. “Evolving my belief about retirement shifted everything for me,” he says. He put a plan together for selling his business so he could create the retirement he imagined for himself and his family. Once this vision was clear to Klontz, he began catching up on his retirement savings. In that dream, he would do work that inspired him, complete it on his schedule and live where he wanted to live. By making that realization, he was able to imagine his dream retirement. His internalized beliefs about retirement didn’t reflect his true vision for his future, but they shaped his actions in the present. I loved what I was doing and couldn’t imagine ever quitting,” Klontz says.Īfter saying it out loud, Klontz, who has a doctorate in psychology, realized what had been holding him back. “In my family history, people who retired never did anything related to their entire work career-that part of their life just stopped. The friend asked what retirement would mean for Klontz, and he instantly responded: It means you quit. But when the time came to direct funds into his retirement account, he didn’t do it.įrustrated with himself, Klontz-researcher, author and co-founder of the Financial Psychology Institute ®-asked a friend for advice.
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He claimed he wanted to save, and he even hired a financial advisor to help him create a plan. Ted Klontz knew he should save for retirement.