The Psychology Behind Money

The psychology behind money decisions has always fascinated me; as a financial advisor, I see a variety of styles in the clients I work with. Although this article describes specific personality types, I’ve found that most people are usually a combination of these traits, which may play out to a degree when making financial decisions.

Having this information can help you identify any potential pitfalls as well as improvements you can make with your relationship with money. A little self awareness can be helpful in motivating positive change – even for the financial planner in her own situation! – as our money styles can evolve over time.

People often ask me how I can advise clients when knowing they have a specific money style; honestly, it’s the best part of the job. After all, people often attach a great deal of emotion, both positive and negative, to their financial decisions. For this reason, a financial planner can help you see your decisions more broadly in the context of your goals, and whether each step helps to move you closer – or farther.

~ Presented by Danica Goshert