Ok, now we all know that creating a budget is important to help keep your financial life in order. And as I have mentioned in the past, if you don't have a coach to show you how to create it correctly, it could do you more harm than good. But even when you have created a budget that fits and make sense for your financial reality, there are still some more components that can come around and destroy all of your hard work! So in this post, we are going to talk about the different personality types and how they can affect your budgeting plans and essentially your life.
Most of the experts say that there are four different financial personality types. Spender, Saver, Avoider and Monk. Below you will find a breakdown of each one....
1. The spender- this may seem obvious but, this person spends and spends pays no attention to the budget created. There is something inside of them that is compensating for something else, and just feels the need to spend as their heart desires. This person can destroy your budget more than any other personalities.
2. The saver- this person thinks it's more important to save for the future than to enjoy the present. They are HIGHLY anal about the budget and any deviation can make them crazy. They are usually the "responsible' ones too. Combine a spender with a saver and one can be called "fun" and the other "boring".
3. The avoider- now this person just avoids the bills all together. They don't want to know anything about a budget or about the interest they are paying on their credit cards. They usually WILL NOT even open a bill to see the balance or when it's due. This person is dangerous financially because they spend without a clue of what's happening in their accounts.
4. The Monk- This person thinks and feels that money has no place in our society and if they can avoid the use of it in any way they will. These people usually live a very very very simple lifestyle and prefer not to even speak about money at all, because it's messes with their spriritual flow and existence. Need I say more?
Ok so now that we know what type of personalities there are for dealing with money let's talk about how we can make things more pleasant between clashing personality traits.
This is where EQUAL DOLLARS, comes into play. Now we all know that opposities attract and how there needs to be balance in the world, the whole Ying and Yang theories. But the problem is that when opposities comes together there is usually a problem with how they interact with one another. This is especially true when it comes to finances. The statistics vary but it is VERY widely known that the BIGGEST reason for relationship stress and arguements is FINANCES!
Equal Dollars is meant to keep this in balance. Let's say that in one household you have a spender and saver, or saver and avoider, or spender and avoider (this is really not a good combo), how do you keep your financial reality and budget in line without filing for divorce?
If you combine accounts and finances, this is for you! This is how equal dollars works.
1. Agree on an equal dollar amount that fits into your budget. For this example lets use $100 each.
2. Every month, each person gets $100.
2. For the spenders, that they can spend it on ANYTHING they want. And the rule is, that the other person can't comment on the purchase because it was bought with equal dollars. They can even save it for bigger purchases without repercussions.
3. For the savers, you can save the $100 a month if you want and put it away for your rainy day. And again the other person can't comment on it either.
4. For the avoiders, they only get the $100 to spend ONLY if they open and pay 2 bills per month. This is an incentive for getting them involved in the financial future of the couple.
The idea behind this method is to keep the arguements to a minimum. The spenders are happy because they can spend as they want ($100 in this case) without arguement. The savers are happy because they get to protect their own money without fear of losing it, and the avoiders are happy because they still get to avoid the majority of the bills and get to spend a little for themselves.
Now if your budget after it's been created, doesn't have enough room for $100 each per month, make it $50 or $40, or whatever is going to keep you on track.
REMEMBER: Just because your working together and living together doesn't mean you should LOSE your independence. EQUAL DOLLARS makes sure you can still make decisions on your own with your hard earned money, it keeps your financial personality happy, it reduces the #1 reason for relationship stress and it keeps your budget alive and well!
Paycheck Distribution Coaching- "Making your money work harder for you than you do for it!"
If you have any questions or comments please feel free to post below!
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Monday, February 7, 2011
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