Monday, January 11, 2010

Your Money Personality

Have you known your own personality? Or which personality you would like to be from now on ?

These are analyze from

  • Your level of desire to create wealth

  • Your willingness to take risk

Here are the 4 money personalities:

  • The Hoarder
  • The Achiever
  • The Entrepreneur
  • The Thrill-Seeker

These personalities are defined by different level of desire to create wealth and willingness to create risks. These are shown in the chart above.

The Hoarder

Have low desire to create wealth and low willingness to take risk. Typically, Hoarders are careful, conservative money manager. They live by a strict budget and keep spending under tight control. Hoarders dislike debt, and if they have credit card they pay off every month. They prefer to see their wealth grow slowly and steadily, rather than take risk. They are only comfortable with safe and secure investment for low investment return. They are primary fixed-interest investors.

If you are a hoarder, you will miss opportunities to make your money work for you.

The Achiever

Have low willingness to take risk, but they have a high desire to create wealth. Achiever will be analytical and cautious in approach of money. They are mostly highly paid professional with status conscious. They will spend money on things to create an impression of affluence and success such as big house and expensive car and etc.

Sometimes an achiever will fall into bad habits, such as spending money they cant afford.

The Entrepreneur

Have both a high desire to create wealth and willingness to take risk. Entrepreneurs are the true creators of wealth, people prepared to take an initial level of risk in the expectation of high returns. They can succeed despite having few assets or a small income. If you are an entrepreneurs you will not feel restricted by lack of money because you will use someone else money.

Unfortunately, you can fall into bad habits with money such as debts.

The Thrill-Seeker

Have a low desire to create wealth and have high willingness to take risks. Thrill-seekers are gamblers. They take risk for the sheer enjoyment of it, and would rather continue taking new risks than accumulate wealth. They live by the motto " Easy come, Easy go ". Credits cards are used to the limits.

Tips for investing

  • Reduce risk and increase your peace of mind by getting advice from an expert.
  • Make 2 investment portfolio, 1 for safe investment and another fund for investment purpose.

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