Search
  • Now You Know PH

[Fin Talk] What is your Financial Personality?

By Arlyn Tan

The pandemic has caused groups and families to engage in conversations about money hacks in surviving the crisis. If I am an observer, I am sure that I will see some individuals who are very confident in sharing money tips. Others may be wondering when the discussion will shift to topics like the K-Pop band BST or trending Netflix movies.


Apart from relationships among humans, there is a relationship between a person and money. The current comfort level of managing one’s finances stem from culture, childhood experiences, social expectations, example from parents and education. Your money stories will impact your financial personality, perspective and success on money management.


Success is usually equivalent to the happiness level of a person. When a person has debt to worry about and income streams that are not enough to sustain the desired lifestyle, then money becomes a stressor. However, if money enables a person to maximize the time with his family and for his passion, then money is an enabler of happiness.


When I researched about financial personalities, I found the framework of Ken Honda, the author of “Happy Money, The Japanese Art of Making Peace With Your Money ” relevant. Which one are you ?


1. The Compulsive Saver

Frugal in nature, you derive security from your net worth and cash levels. You always have ready emergency funds, and debt may not be a concern for you. Too much saving though may deprive you of the experiences that may further enhance your happiness levels.


2. The Compulsive Spender

Seeing the “sale” sign accelerates your adrenalin level because happiness is about spending. You find stress relief from shopping.


3. The Compulsive Moneymaker

Your lens is focused on entrepreneurial and investment income which allow you to reach financial freedom fast. The downside is more on spending less time on what matters most – time with family and social circles.


4. The Indifferent to Money

Believing that money is a source of evil, your important goal is to just save the amount that is equivalent to the monthly basic needs. Planning for the future may be heavy work and cause you to be dependent in the future.


5. The Saver-Splurger

A combination of saver and splurger makes you believe that as long as you have a consistent income stream, you are entitled to spend. With the constant cycle, you can forget that saving or investing needs to be part of the equation to maintain the lifestyle in case your income stream is gone.


6. The Gambler

A combination of moneymaker and spender will push you to take risks for the sake of excitement. You are comfortable in investing in instruments where the upside is high. Taking too much risk may cause you to lose financially and affect your family and work.


7. The Worrier

Even if you have sufficient funds for the present and the future, you tend to worry that the funds won’t be enough for your education and retirement requirements. Worrying keeps you working hard, but too much of it can rob your peace of mind.


What is your money story in your next conversation with your family and friends? Be confident to share yours because you will always have a good story to tell. While listening to the successful money stories of others, stay calm. Your happiness was your priority in the past.


Understanding your financial personality can help you recognize what you do well and what you need to improve. By acknowledging that certain behaviors can cause debt pile-up, overspending or worry, you will be intentional in finding services and instruments that complement your personality. Enjoy your financial journey despite the speed bumps, and may you reach your objectives : happiness and healthy relationships.







Arlyn Tan is a Strategic Wealth Consultant. She helps individuals and organizations on how to maximize the value of their money through risk, health & wealth management. Her mission lies in making sure that clients achieve 3 things. First, they reach their milestones on time with sufficient resources. Second, they protect them from the impact of economic losses secondary to unexpected events. The third and most important is that they enjoy meaningful and balanced lives.


LinkedIn/Twitter: Arlyn Tan

FB/IG: @pinnaclefinlitcoachph

59 views0 comments
NYK hi-res logo bug..png

NOW YOU KNOW.