How Do You Do Money?
How you do money is how you do life. That’s a drastic statement to make, but I believe it is true.
Personality types:
The Myers-Briggs Type Indicator is a personality inventory that has relevance to money management. One of the four continuums this test measures is “Judging” or “Perceiving.” (Don’t worry about trying to make sense out of these terms.)
This part of the test identifies the extent to which you prefer structure to spontaneity.
My favorite example is vacation plans. Which is your preferred way of planning a vacation?
STRUCTURED: Have an itinerary. Make reservations months in advance. Know how many days you are going to stay in one location. Research the things you are most interested in and know which days you are going to do what. You enjoy anticipating all the things you have planned. You pack two weeks in advance of your trip.
—or—
SPONTANEOUS: Have a general idea where you want to go (state or country). Call close to the departure date for travel arrangements. Hope for the best. If you don’t get the area/date you wanted, you easily switch to something else. Schedules are too limiting. You pack the last minute figuring that if you forgot something major, you can buy it there.
Now think about your approach to money:
STRUCTURED: You have organized folders for your various money transactions. You pay your bills on time. You know roughly (or precisely) how
much money is in your bank accounts. Preparing for your tax appointment is doable, if not exactly fun. You think being disorganized is chaotic. You have
specific financial goals.--or—
SPONTANEOUS: You have piles of stuff related to money matters in various locations all over the house. You pay your bills more or less when you feel like it or when you eventually notice you are being assessed late fees. It’s an emotional crisis getting ready for your tax appointment. You think being organized is boring. You wish someone could manage your money for you—it’s a bother to have to sit still with this stuff.
My examples are extreme, I admit. Each approach has its plusses and minuses. Most of us fall more in the middle, sometimes preferring structure, sometimes spontaneity. However, most of us have a preferred tendency. Money is a case where it is helpful to try to be more structured. Spontaneity does not cut it with the bill collectors! Your system does not have to be rigid with color-coded files or fancy spreadsheets. You don’t have to be obsessive about it. But you do need a system.
My ideas for adding structure to your money management routines:
- Put financial stuff in one general area in your house. Avoid scatter!
- Create some labeled files or small boxes with logical names: tax receipts, bills to pay, medical records (for tax deductions), and investment records.
- Create a “Someday Maybe File”. This file can contain ideas for items you’d like to buy or activities you’d like to do. This can create sharper focus for setting goals.
- Schedule regular times to address money matters: pay bills, talk with your partner, set goals. Enter specific dates and times on your calendar.
- Be willing to ask for help from someone who is inherently more structured than you are.
- Know it can be stressful to step out of your comfort zone if your usual approach is to value spontaneity over structure.
For you super-structured types, know that you can loosen up just a bit and still survive.
Spontaneity adds spice to life and allows you to “Dream Big”. Structure helps you reach your dreams.
Judy Davidson
