It becomes easier to make more money when you have a perfect understanding of your money temperament. For lots of people, financial decisions constitute emotions and prejudiced desires; they are not only about the dollar or cent. Tope Ganiyah Fajingbesi, a certified public accountant based in Baltimore, Maryland, said that you may be able to make better financial decisions by analyzing your attitudes about saving and spending. She analyzed these attitudes, grouping them into five financial personality types and to make it easily understandable; she assigned a color to each of them.
– Green: This category includes characteristic entrepreneurs who believe that money ought to be invested and also want to grow businesses.
– Blue: This includes financial managers and good employees who can keep budgets and seldom take financial risks.
– Yellow: People in this group have the mentality of working hard and playing hard. They are emotional spenders who can purchase luxurious items to reward themselves.
– Gray: This category of people is comfortable with what they have and do not really aim for great wealth.
– Red: This group of people does not handle money practically. When in debt, they are unable to develop plans for clearing it.
According to Fajingbesi, some people mix up two of these colors. In her recently self-published book entitled “What Color is Your Money?” she outlined that you can increase your awareness of your strength and weaknesses by determining your money color. She also pointed out the shortly mentioned ways in which your business can benefit from being aware of your financial state and personality.
– In choosing a co-founder or business partner
According to Fajingbesi, you should bring people who can make up for your financial weaknesses into your team. For instance, if you have blue personality, you might easily keep budget in the business but it might be difficult for you to make investments when lots of money is involved. She pointed out that excessiveness caution on the side of an entrepreneur can draw a business back. Knowing your money temperament will help you to choose a business partner wisely which will culminate in achieving better and quicker success.
– In matching your pitch with the personality of the investor you approach
Fajingbesi cited a good example of the best type of investor that would make for building a train in Africa. Such a folk should fall into the gray personality division because he or she may not be able to get the money back in the next 15 or 20 years. It is of utmost importance that you match your investments with the project types that would be best for your temperament. Gray investors can consider putting in money into community and economic development since these projects may bring small and slow return on investments and will be the best for the person’s individual beliefs.
– In staying away from awful financial mistakes
Another wonderful benefit of knowing your financial personality and temperament is that it will help you in avoiding some financial mistakes you would have made. For instance, a naturally impulsive green person might want to invest every cent that comes by his or her way instead of saving some of them. However, if such a fellow had understood his or her financial personality, he or she would simply be running the investment idea with a blue personality who is trustworthy. Fajingbesi pointed out that it is very important that you understand your money temperament and personality in order not to make such a dire mistake that would cost you a lot financially.