The Financial Physician’s Daily RX
Does Money Make You Mental?
Find out your financial psychology and live a well-balanced life.
Do you know what your financial psychology is and how it affects your financial health? Just like mental issues have physical symptoms, your financial psychology determines your financial circumstances.
The Ailment: People obsess over money more than anything else including sex, politics, religion and sports. It’s very important to understand how financial psychology dictates how we use and think about money. The mental portion is the “why,” your financial situation is the result.
The Diagnosis: Where do you fit among the five most common financial psychology profiles?
- The High Roller: Always looking to hit the jackpot! Everything in life is a gamble and wants huge returns in a short period of time, and incurs losses as a result of sloppy allocation of funds.
- The Abdicator: Has little interest in managing money. This person is trusting and is often surprised when he or she loses money. The abdicator is frequently taken advantage of or makes poor buying decisions.
- The Credit Junkie: Addicted to acquiring material things, rather than building wealth. This person is in denial about addictive spending habits, has few savings, is self sabotaging through compulsive spending and carries large credit card balances.
- The Squirrel: This is the ultra-conservative with investment and spending habits. He or she lives frugally, always fearful about not having enough money and spends too much.
- The Master: Obsessed with money management, well educated and up to date on money matters. He or she employs risk controls with investments, enjoys money success, while living an abundant, but balanced, life.
So, have you determined what your financial state of mind is yet?
The Treatment: In my career, I have played the role of financial therapist often and can assure you that how we relate to money is a learned behavior that goes back to our youth. Based on the profiles above, determine where you need to be in order to strike a healthy balance between saving for the future and still enjoying life today.
Learn more, get your copy of “The Financial Physician:How To Cure Your Money Problems and Boost Your Financial Health”