I’m hedonistic …what are you?

February 11, 2014

As most of you know I counsel and mentor people, who are wanting to change their behaviours around money. I therefore talk to a lot of people about money, not just clients but also people who I am talking to about what I do. Almost everyone is interested in that, but there is a group who cannot get their heads around how I could make an income doing what I do. Sometimes it isn’t easy to make an income but I am very confident of the premise around my business model. There are people who are willing to pay to eliminate or at least reduce, the pain they are suffering from their money mess!

The people who cannot understand this are almost always very good at managing their finances, especially their spending. They seldom have credit card debt, in fact apart from their mortgage or some student debt, they rarely have debt at all. Their credit cards are paid off in full every month without fail. They consider all purchases they make very carefully, often conducting extensive  research before deciding to purchase. Impulsive decisions are rare, if not non existent. So their behaviour is very different from the majority of my clients, who often have significant debt and don’t always manage to pay their credit cards in full every month. They know the buzz they get from impulsive purchases.

So their behaviours around money are vastly different and the first group of people are the ones who are most likely to doubt anyones ability to create a business around helping the second group.They believe that all you need to do is teach people to do what they do. Simple and straightforward.

If only it was that easy. The majority of my clients know what they should do, but actually doing it is a very different beast!

Why is that? Well for one thing they don’t see money and spending as so black and white. Just as some people eat food as simple nutrition, others of us relish the emotions and feelings eating delicious food can evoke. The reason why just knowing what you SHOULD eat, is seldom enough to make dieting successful!

They also invest money and food with more powers than a simple commodity or the way to provide your body with the fuel it needs to perform it’s functions. We can use food or money to make us feel better emotionally, to celebrate with and to give us simple pleasure.
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The reasons for these differences in behaviour are so often emotional or even psychological that changing them can be a very complex issue and require the kind of commitment by them and me , as those trying to lose weight and those trying to help them!

So why the differences? Well, people have all had different life experiences and these affect the way they behave and respond to life’s stimuli. Is that all there is behind it? Not at all!!

Whilst the emotional experiences have significant impact on our reactions, of equal or greater influence I believe, are our inherent personalities. These determine our responses to life in general and our subsequent behaviour. From an early age we can detect differences in personalities and how children react to situations and people, differently.

Sorted, is a New Zealand website which gives vast amounts of excellent information about money behaviour and how to manage your money better. They have an amazing array of calculators which you can use to determine how much you would save over x amount of years if you saved y over time. They can really help improve your decision making ability. I encourage you to explore this site.

The one I am interested in today is the Money Personality assessment tool. Designed by a psychologist, it asks 25 questions and then places you into 1 of 16 money personalities. It is light hearted and fun but also gives good information for you on how your personality may influence the decisions you make around money. I recommend you try it. For  your interest I was hedonistic! I struggle with this type of assessment because I am never sure if I should answer how I have learned to behave or my natural inclination. I usually combine both and come out with pretty interesting but unhelpful results.

Let me know what your personality is and how accurate you think it is.

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