Personal Finance Personality Types

Personal Finance Personality Types - Part 2

2006-08-17

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The Millionaire Next Door
This phrase was made popular by the book by the same title by researchers Thomas Stanley and William Danko. The “Millionaire Next Door” doesn’t necessarily mean these personality types are millionaires, they just act like them. These people are keenly aware of all aspects of their personal finances and the situation they are in. They know how and are willing to make adjustments to reach their financial goals – even if it means they have to sacrifice certain luxuries to do it. They have long term in place and a plan to reach their goals.

The Millionaire Next Door types think wealth is far more important than income and tend to invest most of what they earn. They tend to minimize purchases and are always looking to get the most “bang for their buck”. They tend to drive cars longer, and don’t buy new cars. They subscribe to the theory that time is money and don’t waste time driving all over town to say a few cents.

Whats Your Personal Finance Personality
So Which Personal Finance Personality Are You?
Although we have only discussed 3 personal finance personality types here, these 3 types cover about 80-90% of people. You may not neatly fit into one of these categories, in fact you will most likely find yourself somewhere in the middle. You may find that you are Check Writer who drifts to the Toys type from time to time. You may find that you and your spouse are exact opposites where you tend to be one type and your spouse a completely different one.

Take a long hard look at yourself and be completely honest with yourself, identify which personality types you are. Only then can you identify the problems in your personal finance situation nd begin to work on correcting them.

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