Archive for the ‘Financial Personality’ Category

What is your Financial Personality?

What is your Financial Personality?

Storing Treasures mission is to help people design a flexible plan to meet individual needs rather than trying to fit everyone into the same rigid program. The purpose is not to change YOU…it is to help you understand yourself and others better so you can reach your financial goals. In our years of counseling families, we have learned that discovering your financial personality and how you think and behave is the most critical element to long term financial progress.

Please check out our “What is STAFF” area. This new online education platform is designed to help you understand your specific financial personality and then use it to create your own individualized financial plan.

For more information, please feel free to contact me personally mike@storingtreasures.com.

Thanks!

Mike Haswell
Storing Treasures
770-995-6043

Your Economic Identity

Socrates stated that the unexamined life isn’t worth living. While that statement can be viewed as extreme, it is obvious that a key first step to living a virtuous and full life is knowing yourself. All of us, at one time or another, have wondered why some financial advice works for others but not us. Understanding ourselves financially is the driver behind meeting our financial goals.

Shane Satterfield, Marketplace Chaplains, shares with us in the video below how Economic Identity matters in our relationships and how it impacts our financial decisions for the future. Please watch the quick video and consider how financial behaviors play out in your family.
Your Economic Identity.avi
Your Economic Identity.avi
Shane has really identified an important issue….  Financial decisions based on other’s success, without a clear understanding of ourselves, can lead to frustration and anxiety. We are all uniquely wired and it is our financial personality that drives our behavior. There is no right or wrong economic identity and this process is not about changing who we are….it is a recognition that we each have specific strengths and weaknesses that we bring to the table. Each of us has two traits that influence how we think and two traits that influence how we behave regarding finances. By understanding how we think and behave, we can then make financial decisions that work for us.

 

Romans 12: 4-8 clearly states we each have different gifts. What are your financial tendencies and how can they be used to help build your financial future? Storing Treasures goal is to help you unpack those behaviors and create a long term plan that works for you and your family.

Your Economic Motivation

 

motivation  

The American Psychological Association completed a study about issues that cause significant stress in our lives. An incredible 76% of those surveyed indicated money was at the top of the list of significant stresses and relationships were second at 55%.  So, how do we begin to tackle the first rung of the ladder to become motivated to make positive financial changes in our lives and then SUSTAIN that momentum over the long term?
 
Motivation is a term that refers to a process that elicits, controls, and sustains certain behaviors.  I have had the opportunity to financially counsel singles and couples for over 20 years and have learned both the importance of motivation and key principles to stay engaged over the long haul. Listed below are seven of the most important  principles to remain financially motivated.

 

1. Understanding your role-  Have you ever worked at a job where you were confused about your role and seemed unable to motivate yourself to perform at a high level?  Understanding our role as stewards  can be one of the most rewarding and motivating aspects of the Christian walk. Take a moment and read Matthew 25: 14-30. MT 25: 14 states “The kingdom of God is just like a man about to go on a journey; who called his own servants and entrusted his possessions to them.” 
– We are managers and not owners.
– God has entrusted us with resources (talents).
– We are expected to manage those resources based on HIS principles.
 
Once a stewardship mentality is understood, motivation to make changes becomes an important part of our daily lives.
 

2.  Understanding your financial personality-  In my years of counseling, I have yet to find a more powerful motivator to improving financial success than understanding financial personality. The focus here is on grasping our unique wiring and then realizing how we think and behave matters in being a good steward and reaching our financial goals. We need to eradicate the shame, guilt, frustration, (put your word here) by moving past what we SHOULD do and focus on WHO we are. More to come next week on this topic in “Your Economic Identity.”

3. Focus on the “why”. The first step is to focus on the “why” of our values and goals instead of the “how. Julia Belyavsky Bayuk, an assistant professor at the University of Delaware, cites research that planning exactly how you will reach a goal, such as paying down debt, can actually make it harder to reach that goal if you dismiss the “why” behind it. For example, if you run off to complete a budget because you are overspending but do not focus on “why” you overspend, the positive effect and motivation to continue will be short-lived. The budget is just a tool…nothing more. Your first focus should be on your behavior. As you are getting started, focus on the motivation behind a goal first before the goal itself.    

 

4.  Dream- Begin with the end in mind- Take a few moments and answer this question. “10 years from now, the dream for my family’s finances is _____________.  Take some time and list out some of your dreams for your family finances. Include your spouse (if married) and complete a list together. Think big- don’t be constrained by where you are today. Then, post that list of dreams in a place that will inspire you to reach for the stars. Vision is one of the most important motivators we have…lets use it with our money!

   
5.   Embrace your circumstances- Circumstances in our lives can be a very powerful motivator to making changes. It could be the realization that you cannot do this any longer; it could be a bankruptcy or foreclosure; it could be that you are just tired of living paycheck to paycheck. Pain can be a very powerful motivator….if this is your story, embrace it and use it to make long lasting changes.  Your finances may not be in trouble but just on autopilot and you want to change your financial life for the better. Many of us have seen financial freedom modeled by friends or family and a simple motivation may be reaching out to that person for some support.
 
 6.  Create milestones and goals-    If you want to stay motivated to succeed with your finances, goal-setting is a must. Without goals, you lack focus and direction. Goal setting allows you to take control of your life’s direction and purpose. Luke 14:28-30 clearly states the importance of goal-setting. The key point is to do this by understanding your unique wiring. Goal setting and financial personality is an important part of our teaching so contact us if this is an area you want to explore. Remember- there are plenty of tools that help you set goals….our focus is on the behavior that will allow you to stay motivated long term.
 
7.    Track your progress-  Think of changes to your financial health as a marathon and not a sprint. Many of us did not get into financial strain over night and we will not get out of it that quickly either. However, the long term benefits to realizing your dreams and being financially free is an awesome journey you will never regret. So, how is this done?  One of the best ways to evaluate the long term impact of your financial focus is your net worth. List your assets and liabilities today and calculate that number. Then, estimate where you will be a year from now based on the changes you are implementing in your life. Continue evaluating where you are at least twice a year to see if you are moving forward.
 
“An object in motion will remain in motion and an object at rest will remain at rest unless acted upon by an unbalanced force.”  You are that force- get motivated to make a difference!
 
We’d like to hear from you- how do you get motivated in the area of money?
 
 
Looking forward to sharing about Economic Identity next week.
 
Blessings,
 
Mike

The Power of Your Financial Personality

We all know how important an engine is for a winning race car. A successful racing team understands what’s under the hood of their car and how to make it perform to the highest level. In the same way, it is important we understand our own ‘financial’ engine and how it performs. We call this engine our financial personality. Discovering our financial personality and understanding how it affects our decisions is critical to financial success.

Many organizations will tell you that you need to behave in a certain way if you are going to be successful financially. Attempting to change who you are is not only frustrating, but is not in line with God’s will for your life. Learning to work within your personality is the key to financial success.

Romans 12:4-8 tells us that we were each created with different gifts and talents that make us unique. You should not try to change who God made you, or attempt to change others. Rather, you should use the talents God gave you to become the person He designed.

In counseling singles and couples over the years, we have seen four universal traits that drive financial decisions and behaviors. The first two contrasting traits drive how we think about money. Most people are either spontaneous or analytical. Spontaneous people are more emotionally driven in their thought process. Analytical people like to think and ponder before making a decision.

The second two contrasting traits tell how we behave towards money. Cooperative people like to make sure all sides are heard before making a decision. Assertive people have no problem telling individuals what they want regardless of conflicting opinions. By combining these traits, we have found people generally fall into one of four financial personalities.

Read through the four personality types below and see which one you identify with the most. Remember, there is no right or wrong personality and each one has its own strengths and weaknesses.

Statesmen are a combination of cooperative and analytical traits. They are generally tactful with people and tend to be comfortable with their finances. They like to set goals but may be too passive when it comes to executing those goals. They easily adapt to other points of view. Statesmen are conservative savers and investors. They plan for tomorrow but not at the sacrifice of today.

Cruise Directors are both spontaneous and cooperative. They generally have a charitable heart toward others and are givers. They also tend to be somewhat impulsive and get pleasure out of spending money. They generally have no desire to get wrapped up in financial planning and are not driven by specific financial goals. Cruise Directors think about today and don’t worry much about tomorrow.

Litigators are assertive and analytical. They are calculated risk-takers and disciplined savers. They tend to set goals and plan for their financial future. Given their assertive style, they tend to take charge of their money. Family members may see them as overbearing or rigid. Litigators plan for tomorrow, sometimes at the sacrifice of today.

Race Car Drivers combine assertiveness and spontaneity. This allows them to multi-task with the ability to make ends meet. They tend to have an entrepreneurial spirit but can be emotionally drained by the challenge of juggling their personal finances. Race car drivers are generally risk takers. While very financially active, race car drivers tend to struggle with consistent financial progress. They tend to think about tomorrow but may not be able to get past the issues of today.

When you understand your financial personality and that of your spouse, if married, communicating about finances is easier and more effective. Better communication leads to a more solid financial plan that works long term and you will begin to make financial decisions that work for you!