Recent research by Reader’s Digest has revealed that every person has a cash personality type that defines the way they handle their financial resources. Where do you fit in the spectrum?
Perhaps you are what is known as a cash ambler. Amblers tend to give little thought to finances until a crisis of some type erupts. At that point, the ambler is likely to be completely unaware of what triggered the crisis or how to deal with it. Amblers never give any thought to budgeting or putting away money for the future.
Evaders tend to not be apathetic toward matters of finance. Instead of the general disinterest of the amblers, evaders will find all sorts of reasons to not read correspondence from banks or finance companies that hold the car loan or secured loan. Bank statements are quietly put out of sight in hopes they will magically disappear overnight.
Hoarders are so obsessed with saving money for a rainy day that they often deny themselves necessities that would benefit them greatly in the here and now. In general, a hoarder is always on the lookout for the next crisis and may not be particularly happy when the economy is going well, since bad times are sure to follow.
Splurgers go to the opposite extreme of hoarders. They gleefully spend money as if there is no tomorrow. Unlike amblers, they may feel some compunction now and then to pay some attention to the state of their finances, but their efforts quickly take a back seat to gifting themselves with whatever they or their loved ones desire.
In truth, most of us have some characteristics of at least two of these different personalities. The trick is to learn how to balance the tendencies so we approach the future with optimism rather than fear, know how to reward ourselves within reason, and do not delay important tasks such as budgeting and planning for the future.
Take a moment and consider each of these personality types and determine which ones are most relevant to your situation. Then look for ways to cultivate a more equitable approach to the way you spend money.
