A hundred kids, on a sugar high, in scary costumes, demanding candy would typically send me to the hills – but I do quite enjoy Halloween.
But what does it have to do with money?
I have two kids, they have two identical pumpkin buckets and they both come with me to all the same houses. At the end of the night my son, bless him, has eaten or given all his lollies away. My daughter still has a bucket full of lollies from last year.
Which leads me to what is your lolly or lolly (being slang for money) personality?
In other words – how do you relate to money and what effect does it have on your overall financial position.
Why is this important?
Once you figure out your money personality you will be able to make better decisions on how you save, spend and invest.
I have divided it into 4 simple types:
1: Little Miss Security
Little Miss Security hoards money and takes as little risk as possible. No matter how much she has, she always feels some disaster will leave her destitute and penniless.
This is you if:
- you enjoy checking your account at the end of the month to see how much you have saved
- you trawl the deal sites every night and love nothing more than sharing your latest bargains with your friends
- you keep all your money in the bank
Advice for Little Miss Security:
In order to receive rewards it is necessary to accept some level of risk. Take time to understand the risk reward trade-off between different types of investments. The balance must be such that the potential return on the investment will allow you to achieve your goals while the level of risk will not deprive you of any sleep. Start slowly and expand into other types of investments as your confidence improves.
2: Little Miss Spender/p>
Spenders equate buying ‘stuff’ with feelings of love and importance. The Jimmy Choos are symbols of respect and self-worth (even though they can little afford them). “I deserve it” is the phrase most often uttered as they increase the debt on their credit card just a little further.
This is you if:
- you know you don’t need it but…
- when doing lunch with your girlfriends – you feel that you always have to pay the bill
- love to wow everyone with your fabulous –home, car, gifts
- Advice to Little Miss Spender
Understand where you are haemorrhaging cash, devise a budget and stick to it! Online budget tools are amazing for this. If your credit card is your Achilles heel, cut it and give yourself a weekly cash allowance.
Little Miss Avoider
Little Miss Avoider feels overwhelmed or completely disinterested when it comes to money. She has no idea what comes in and what goes out, how much she has in her bank account or Super. The less she knows about her financial situation – the better.
This is you if:
- you have an underlying sense of dread about your financial situation – but never do anything about it
- you avoid financial decisions like the plague
- even talking about money makes you completely uncomfortable
Advise for Little Miss Avoider
Understanding the basics is not that bad – it could easily be a primary school subject (and really should be!). Understanding your finances gives you an enormous amount of security. You also could be missing out on opportunities – why shouldn’t your money work for you. Come to one of my seminars – they are fun and all money raised goes to charity.
Little Miss Holy
The pursuit of money is evil and the concept distasteful. Who you are and what you do cannot be defined in monetary terms. Rich people have poor values and are not happy.
This is you if:
- you know that you are drastically under paid, but can find a hundred moral reasons why you shouldn’t do anything about it
- If you have a windfall, you can’t wait to give it away to family, friends charity – anything
- always pursue the path with less financial gain as if it were on the moral high ground
Advice for Little Miss Holy
Have you heard of Bill Gates? Money has tremendous power for good – to support causes that you believe in and help people who are less fortunate than you. Put together a clear plan and budget for all the wonderful causes would benefit from your help financially and work towards that (of course making sure that your own needs are properly taken care of first).
I am sure that you are smiling and nodding your head as you are most likely one or a combination of the above.
As a financial planner, I get to see the whole Little Miss collection. I really take the time to understand you as an individual – what are your goals in life and how do you relate to money? I then design a strategy that you are comfortable with and that will work for you.
Once my clients have a clear strategy in place for their finances, they have much more time and headspace to focus on achieving their real goals.
Get in touch if you are serious about a strategy that would work for you:
w: Marisa@onelifewm.com.au t: 05416538227
‘Because life is too important to worry about money’