What Financial Archetype Are You?
This blog entry will be the first in a series based on our popular Financial Empowerment course taught through the Christopher Wren Association at the College of William & Mary. Although we will not be active this semester, please keep a lookout in future course catalogs for our class offering!
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People are different. This is not news; we’ve all been told since kindergarten to embrace our unique qualities and personalities. But, when it comes to traditional financial planning, it has always been assumed that everybody wants the same thing: to accumulate as much as possible.
Yes, it can be said that the purpose of investing is to “earn a profit,” but that phrase can take on a variety of meanings depending on the personality of the investor.
In his book “It’s Not About the Money,” (published in 2008), Brent Kessel identifies eight different financial personalities, dubbed “archetypes” to describe the ways people think and feel about their money. Here are just two examples:
The Saver perhaps best embodies the traditional goal of accumulating as much as possible. Savers are typically Microsoft Excel experts, keeping spreadsheets for budgets and account balances, as well as holding onto their electric bills from 1975. While Savers will never need to borrow $20 from a friend, they can be guilty of penny-pinching and potentially may never enjoy the money they’ve accumulated.
At the opposite end of the spectrum, the Pleasure Seeker prioritizes enjoying the here and now. Seekers are apt to spend the last $500 in their checking account on a weekend at the beach even though a mortgage payment is due next Tuesday. Although they might have more fun in a week than some of us will have in our lifetimes, Seekers’ impulsiveness can get them into trouble.
What personality type are you? Are you satisfied with the way you think about money? In our next entry, we will talk more about the advantages of different personality types and how we may overcome the disadvantages. For more on the archetypes themselves, consult Mr. Kessel’s book or connect with us for an in-depth conversation.