2 The Avoider The Avoider tends to be motivated by fear and denial about the reality of money in her life. She might not even know how much is in her bank account on any given day and planning for retirement feels too far away to worry about. The Avoider takes a “see no evil, hear no evil” approach to managing her financial affairs – bank statements go unopened and unexamined. As long as collections agencies aren’t calling her, that means that she’s probably doing OK – right? While it’s great not to worry too much about money, the Avoider is ultimately doing herself a disservice. By not staying informed about her finances, she’s missing out on opportunities to set the foundation for a more financially secure future.
The Spendthrift The Spendthrift is motivated by desire – for all the things, products, and experiences that money can buy. The Spendthrift is an expert in things he can’t afford, whether it’s an extravagant sports car, a closet full of designer clothes, expensive restaurant dinners or lavish vacations. The Spendthrift can always find new ways of spending money without ever giving a thought to how to save it. Life with a Spendthrift can be fun, but the fun comes crashing to a halt when it’s time to pay the bills. The Spendthrift sees money as a way to enjoy life and have fun in the here-and-now. While it’s great to live in the moment, the Spendthrift is putting himself at risk for an impoverished old age.
What type of money personality are you? Of course, not everyone fits into one of these more extreme categories, but all of us might recognize aspects of ourselves in the Miser, the Speculator, the Avoider and the Spendthrift. Some people are really cautious with their money, others are carefree – and ultimately, our money personality reflects our larger personality, lifestyle and values. Ideally, it’s best to strike a balance between these different money personalities. You don’t want to be stingy like a Miser and miss out on fun opportunities, but you also don’t want to take a hands-off approach like the Avoider. We all need to enjoy life (like the Spendthrift) but without forgetting to save for the future. We need to recognize that money comes and goes (like the Speculator) but we need to have a more balanced approach to saving, spending and investing.
Bona Fide Women
You Being the True You
June/ July 2011