How Does YourPersonality Type

Affect YourFinancial

Management?by Allan Oulate

When you’re managing your finances,you’re likely to come across some

bumps in the road. Part of the reasonpeople struggle with money related

tasks is because they don’t understandtheir specific personality type and how

it interacts with their financialdecisions.

If you want to shift your habits, the bestway to gain success is work in line with

your natural tendencies. AuthorGretchen Rubin created four major

personality types, which she based onthe way people meet or resist inner and

outer expectations

You can gain a lot more success in yourfinancial life if you understand where

you fall within Rubin’s framework.Below are the four personality types

and how they should handle theirfinances:

Upholders

Upholders are people who tend torespond to both inner and outer

expectations. They have to easiest timekeeping commitments to both

themselves and others, as well asforming new habits. Upholders don’t

have difficulty filing taxes by thedeadline or paying bills on time, which

are both outer expectations.

They also have an easy timeimplementing a new financial strategy,

such as setting a monthly budget ordiversifying an investment portfolio. It

is not stressful for upholders to do thesetasks because they accept the fact that

they must meet expectations to achievea bigger goal.

Obligers

Obligers don’t have difficulty acceptingrules imposed from the outside. They

do, however, struggle to meetexpectations that come from within.

Obligers will meet conventionalexpectations such as paying their bills

and buying lunch for a coworker

But self-created goals like saving in anemployer-sponsored plan are hard for

obligers to implement. If you are anobliger, you need to create systems

focused on accountability. It is a goodidea to automate savings as a direct

deposit so you can gather up anemergency fund.

You may also want to seek the ongoinghelp of a family member, friend,

coworker or professional advisor inorder to establish and maintain a

system.

Questioners

Questioners only meet expectations,both inner and outer, when they feel

that the rules make sense. They do nottake conventional rules of thumb at

face value, but instead do research andevaluate the pros and cons of various

decisions prior to making them.

If a rule does not make sense to aquestioner’s specific situation, theindividual will not follow the rules.Questioners are likely to complete

financial tasks alone and forge theirown path toward certain goals.

They do get things done, but the processcan be lengthy due to their tendency to

overanalyze.

Rebels

Rebels avoid the rules whether they arefrom outside sources or from within.

They consistently resist expectations,thus having difficulty forming new,

healthy habits over time.

They do not like control and thereforeavoid tasks like implementing investment

strategies or maintaining a monthlybudget. Rebels may seem dangerous when

it comes to financial management, butthere are a number of successful business

owners who fall into this category.

Rebels need to establish limits thatprovide ample leeway if they want to

succeed in the realm of personalfinance. It is also a good idea to have

outside accountability partners.

There are strengths and weaknesseswithin each personality type.

Understanding your personality typeand how it functions will allow you to

take the crucial steps towardsuccessful personal financial

management.