There is a growing literature in the field of financial planning around the area of financial psychology. What academics and practitioners are recognizing, more and more, is that money is not just about the exterior life, such as financial ratios and personal balance sheet, but also about an interior life, such as a money personality. Your money personality is important for you to know because it influences how you think and feel about money, which impacts your financial health and even the quality of your relationships.
One of the best ways of understanding your interior life around money is to identify your money personality. My favorite money personality assessment tool is called “Money Worlds,” which was developed by Dr. Miriam Tatzel.
A global economy is a surefire way to understand cash that would possibly or possibly not be shared across others. In maximum cases, he will marry someone whose economic total is another of his own. And this reasons for dating conflicts.
For example, in my own life, after a year of marriage, my wife and I had an argument one day when we came home and said, “Honey, let’s go to Europe for 2 weeks!They’ll charge me about $5,500, and here it is. “And his reaction was something like, “Excuse me? What kind of world do you live in if you need to harass me every time I spend $10 more than our grocery budget, but you’re willing to spend $5,500 just like that?”
While my wife wonders what kind of global I am in with money, I also don’t understand how her global works.
As a user alone, I have spent a safe time making a purchase decision, then I made my final decisions and I didn’t think about it. My wife, on the other hand, spends a lot of time thinking about each acquired, then dying about her decisions for several months later. After 10 years of wedding, I learned that you can return almost any acquiring what you do, adding milk and underwear.
My wife and I definitely operate under different ways of thinking about money. Or put another way, we have different money worlds.
Professor Miriam Tatzel, a social psychologist, saw that people have distinctly different attitudes and values regarding money and began to examine the differences. Finally, he was able to distill various attitudes and values toward cash into two number one characteristics:
As for the “degree of relaxation”, if you don’t have a lot of money, then you are willing, or even willing, to spend money. You think that by spending more you will get the best. On the other hand, if you are short on money, you are usually reluctant to spend and by spending less, you get the best.
Regarding “degree of materialism,” if you are high in materialism, you derive pleasure from material things that improve your quality of life. If I am low in materialism that means that I view material things, like beds and cars, as relatively neutral tools, and delight more in experiences that improve my quality of life.
Please note that being high in materialism is not morally wrong! It just means that you particularly enjoy life through material things.
By combining those two characteristics of laxity and materialism, Professor Tatzel was able to map four imaginable “monetary worlds” for people, namely: those who seek value, those who don’t spend, those who spend a lot, and those who experiment. As I talk about those monetary worlds, see if any of them specifically interest you.
First, if you’re squeezed with cash still in higher materialism, you have a financial “cost reseeker. “A cost reseeker tends to spend a giant time searching and saving up to buy lovely things. The value of things as positive, since, if something is more expensive, it will have to be better.
Secondly, if you are tight with cash and a little materialism, you have a “problem-free” financial world. No space avoids expenses because it is painful. Price is considered a negative thing, which means: the higher the price, the more product or service they buy. In general, they are naturally happier if they are not buying things or shopping.
Third, if you are loose with money and high in materialism you have a “Big-Spender” money world. The Big-Spender spends money on nice things in order to feel connected to themselves and others. Material things are the medium for how they experience and enjoy the world.
And, to underline this point, there is nothing wrong with this cash global. However, having said that, while it is not necessarily a morally bad economic world to have a vital economic world, there are fiscally harmful attitudes that are attached to this cash world, such as the use of debt taking leading to a loss. of economic finance. Studies have shown that those who have a giant overall level of money to spend tend to have the most debt compared to other economic levels.
And, finally, if you are loose with money but low in materialism you have a “Experiencer” money world. This money world has exploded with the younger generations, beginning with Millennials. The Experiencer sees money as a way to buy experiences and services that lead to their growth and development. They tend to avoid acquiring costly things that tend to anchor a person down to one location, like boats and homes, and, instead, focus on being mobile.
So a specific global cash resonated? I would possibly think that a global cash one is uncommon and with little frequency another. Like Enneagram Personality studies, you will have to believe that you have a healthy expression of your global cash and a bad expression of your global cash, or “global cash. “
For me, I tend to be an Experiencer when I am healthy, in that I am loose with money and low in materialism. In my healthy money world, I relate to money in a non-fearful way. In general, I get loose with money when expenses have to do with personal development or memorable experiences, like when I wanted to go on a European vacation. But, if it is something like buying groceries or shoes, I tend to naturally get tight with money since I am low in materialism and I don’t derive a lot of pleasure from material things, in general.
However, when the concern reaches me and entrusted a bad vision that the cash is very rare and I will have to have more to protect myself, it remodeles to a non -depression. As I do not score, I avoid all my expenses and very unpleasant to live.
Once you have known your herbal cash overall and your “cash global wing,” the next step is never to judge a specific person’s herbal cash overall.
Having different money worlds may cause conflict, but appreciating the good parts of a person’s money world is key to navigating the inevitable conflicts that will occur if one of you likes to spend money and the other person is very uncomfortable about spending money. Every money world has both good and bad aspects, so you can’t point your finger.
For example, if you have a friend who is a Big-Spender and you are a Non-Spender (which is very likely if you are a financial professional), there will likely be lots of moments where you will be tempted to judge your friend’s behavior as morally wrong, and you will have conflict with them when you tell them they should stop spending money. In order to manage this conflict, a good first step is to acknowledge that your client’s money world is a legitimate way of viewing money. Big Spenders tend to be great at hospitality. They are naturally able to create beautiful places and comfortable spaces because of their high materialism.
Likewise, big spenders may think it’s unwise to be a slob, portraying them as a ruthless Scrooge character. Maria from Sound of Music, leaving her bus for her new house with a bag, a guitar and a big smile.
Once you recognize that other people have valid money worlds, the final step is to acknowledge and take responsibility for the ways your own money world can become unhealthy and potentially harm others. Owning this, instead of focusing on the bad parts of other people’s money worlds, creates the smoothest path toward improving both your financial health and the relationships around you.
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