Knowing how to use your money wisely all begins with a look in the
mirror. Since your bank account defines you to a certain extent, you are wise
to wonder: How can I enjoy the benefits that money brings me each day and
still have enough to live comfortably when I retire?
The key to balancing today’s financial needs with tomorrow’s
necessities is self-knowledge—knowing why you spend your money the ways
you do.
Your deep-rooted attitudes about money control the way you use it.
I see four common attitudes. You might have components of two or more of them.
By learning your money attitude, you can make your finances work for you.
• The Spender.
Spenders love money for the things it buys them. They prefer to have cars or trendy
gadgets over savings. They enjoy having the newest toys and being the envy of
their friends. They get into trouble when they spend everything they have—or
more—and don’t save money. Spenders who don’t pay off their
monthly credit card debt, slip toward bankruptcy. Tip:
Each month take out your allotted savings and expense money immediately. The rest
is yours to spend how you wish.
• The Builder.
Builders see money as a tool. They use it (or risk it) to turn their dreams into
reality. Builders receive joy from the creative process and may even work at mindless
jobs just to have the resources to build their dreams. Most entrepreneurs and
leaders are builders; however, they are prone to miscalculating the funds and
risks involved in their projects and neglect to leave themselves a margin of error.
Tip: Start developing a portfolio.
• The Giver.
Givers are volunteers, charity donors, and do-gooders. They buy extravagant gifts
for friends that they would never purchase for themselves and deny their own wants
so they can give to others. Givers put their time, money, and energy into what
they believe in. Some enjoy giving their money away. They find pleasure in making
other people happy. Givers tend to get in trouble when they ignore their own needs
and fail to teach their children how to take care of money. Tip:
If you first take care of yourself, you’ll better take care of others.
• The Saver.
Savers are lifesavers. Without them, who would we borrow from? Savers create a
fortune in the bank, while still living a comfortable life, sometimes on a tight
salary. Savers avoid money-wasting activities. They are organized and not impulsive
buyers. They don’t like risk and require a cushion of savings for peace
of mind. But they can be too conservative and avoid investments that could make
their money grow! They also may postpone enjoying their money. Tip:
Determine how much savings you need to meet security needs while still enabling
you to enjoy life. Once you reach this number, spend a little money on something
nice.
Any of these attitudes taken to the extreme can sabotage your dreams.
In a marriage or partnership, both parties must approach discussions of money
with respect of each other’s needs. Money is nothing more than a tool. There
is always more of it to be earned and cultivated to fit your needs.
Start thinking about how you manage your finances. With some honest
self-evaluation and responsible planning, your day-to-day life and cherished golden
years will be golden. PE
The Attitude Quiz
Use the Attitude Quiz to determine which type of spender you are!
1. Shopping
- A. Shopping is my favorite sport.
- B. I shop when I need something.
- C. Shopping can be fun, especially if I shop for others.
- D. Shopping is torture.
2. Credit Cards
- A. Credit cards allow me to have what I want without worrying if I can afford
it.
- B. If I can’t afford something but it’s an investment, why not
use credit cards?
- C. I give my kids credit cards to teach them the value of money.
- D. Credit cards are a good way to build a credit rating and avoid carrying
cash.
3. When I go out for dinner with friends,
- A. We check out the latest hot restaurant, and we split the bill evenly.
- B. Sometimes I pay, sometimes they pay—it all works out eventually.
- C. I usually fight for the check.
- D. We ask for separate checks.
4. If I see something I like, I
- A. Buy it.
- B. Buy it if it fits into my game plan.
- C. Get one for me and one for a friend.
- D. Usually talk myself out of buying it.
5. If I won a big lottery, I would
- A. Never have to think about money again.
- B. Use it to create something important.
- C. Spend a lot of it on friends, family, and charities, and keep enough to
live on.
- D. Take care of my family, pay off the mortgage, then live on the interest.
6. If I don’t have any money in the bank, I
- A. Use my credit cards and line of credit.
- B. Use credit to leverage opportunities.
- C. Worry that I can’t fulfill people’s expectations of me.
- D. Get anxiety attacks.
7. Spending
- A. I don’t know where all my money goes.
- B. I have a pretty good idea of how much money I have, but never let that
stand in the way of a good idea.
- C. Most of my money is allocated to family, charity, or trying to make a difference.
- D. I keep close track of all my bank accounts and investments.
8. I love to use my money to
- A. Enjoy life to the fullest.
- B. Follow my interests and stretch myself.
- C. Make other people happy.
- D. Build a nest egg.
9. When I go shopping for something I
- A. Usually come home with a few extras.
- B. Find it, buy it, and go home.
- C. Look around to see if there’s any thing I can pick up for anyone
else.
- D. Shop around to make sure I’m getting it for the best price.
10. When I give to charity, I
- A. Give to the ones that appeal to my heart.
- B. Choose charities that closely match my aims and beliefs.
- C. Give as much as I can because others need it more than I do.
- D. Allocate a specific amount to the charities of my choice.
11. Transportation
- A. It’s important to get a new car every three years.
- B. If you buy the right car, it’s a good investment.
- C. It’s an incredible timesaver if everybody in the family has a car.
- D. I take good care of my car so it lasts.
12. When somebody has a new car, I ask
- A. Did it come loaded?
- B. What kind of car is it?
- C. Are you happy with it?
- D. How did it rate in Consumer Reports?
How did you score? Add up the As, Bs, Cs,
and Ds: The category in which you have the highest score is your type. If your
top two choices are about equal, you are a combination of two types. Once you
know your type, you’ll know why you spend money in certain ways. PE
