How Your Personality Affects Your Money

In a training stint a few weeks ago, a group of us were required to determine our personality. After doing a simple test, we were grouped into our personality groups and asked to solve a simple question. The personality test we did, is divided into 4 temperament groups, Sanguine, Cholerics, Melachonics and Phlegmatics. There are many different types of test and different names. I’ve been reading of such personality grouping in the past but never paid much attention or paid that much thought till we did the exercise.

As predicted, the group acted as their personality dictated. The Sanguines were excited, talked a lot, made a quick decision and everyone was happy. The Cholerics group, everybody wanted their say and were still arguing when the time was up, the Melachonics, analyse the situation and agreed to an answer and then sat quietly to observe the others. The Phlegmatics were very diplomatic with one another and could not decide on an answer!

It was fun for me to observe but it got me thinking. For a simple exercise, our personality plays such a big part of our decision making. After the exercise, I thought more about why some people find managing money easy, while others suffer and still others just take thing easy. When it comes to money, different personality affects the way they spend, save, invest and manage our money.

I’m writing this so that you can understand your personality and how it colors the way you handle money. Not so that you can excuse yourself from over spending or being stingy. Most of the time, our focus, is on the tools and external motivation. Even my sharing the tips here in this blog, is more towards the how’s and why’s. Our personality is the internal, driving part of our actions. That why, when you understand it, you’ll understand why it is so difficult for an Sanguine to keep records. They are wired as extroverts and prefer to be talking and socializing rather than keep records and budget their money.

A bit more of each personality:-

Sanguine. Generally terrible record keeper. Dislike details, usually tries to earn more to cover any deficit. Getting them to cut back will be tough. Pays bills after several reminders.

Choleric. More orderly and just puts all the bills in one place. Pays bills on time and not too concern if check book doesn’t balance.

Melachonic. Are perfectionist by nature and likes to pay bills on time. He or she will have records for every receipt for the past 5 years in a cabinet somewhere, but they won’t be filed properly. Any mistake will be the bank’s mistake.

Phlegmatic. He or she is systematic. Probably have a detailed budget and matching records. To balance their checkbooks might just be the highlight of the month for them. Bills are early to get further discounts.

I’m putting this very broadly and I’m sure you know that personality is not clear cut, one or the other, but we also have a secondary personality traits that affect and blends with the main personality.

There are plenty of books out there that talks about this and for you to understand yourself more. It will be too long to cover this topic in detail here but know that your personality affects how you handle money. It if not a way to excuse yourself but know yourself. Your strengths and your weaknesses. Manage it. If you are a Sanguine and have a Melachonic or Phlegmatic as a spouse, then they can help overcome your weakness.

Related Articles:

Money Personality - 2
Stop Hanging Around The Same People To Have More Money
How Much Do You Save?
Tax Planning