Know Thyself : So What Is Your Money Management Style?

As a Financial Consultant, I am in contact with so many people out there and for those whom I have the honor to be their financial advisor, most of them have no idea how they manage their money.

Some spend all that they earn, leaving almost nothing to savings, some save just enough, some save so much because they are so terrified of that "dreaded rainy day", some avoid the topic of money, procrastinating their bills, some think money is not worth mentioning cos it's just part and parcel of this earthy world.

I think all in all, I can classify them into these 4 groups :

1. Spenders
2. Hoarders
3. Avoiders
4. The "Higher-Beings"

1. Spenders
The name of this classification speaks for itself. Yes, I do belong to this section as well. But I have also learn to control my spending habits, notice it's control and not curbing. There is always a balance.

Spenders are people who are generously spending their hard-earn money at their will and fancy. They do get to enjoy every single spending moment but would dread the moment the bill arrives. The usual month-end calculation is Salary - Spending = 0. That would be a good case of a spender. For alot of happy spenders and bill moaners, the 0 is no longer a zero but an 'O'. 'O' for Overdraft.

2. Hoarders
Hoarders are avid savers. They are usually frugal and more often than not, sting on anything and everything just because they are so afraid they don't have enough for that one rainy day. Don't get me wrong, we should always make provisions for accidental expenses/costs.

But to save everything and not spend anything on yourself? Hmm... I think you only live life once and I'm certainly not asking you to spend it all! Treat yourself... love yourself because you have worked hard and you totally deserve to pamper yourself a little. So hoarders, relax a little, my money management technique will help you ease up a little. So don't worry, you won't be spending more than you need to. ;)

3. Avoiders
Money can be daunting if you don't know how to handle it. And this is how avoiders feel. Seriously, sit back and think a little on this : I believe in a higher being, in my religion, I would call Him, God. So in this universe where there is a higher being, we are all made in the same image as this higher being, won't we be acting the same way as this higher being?

If your kid is afraid of the dark, would you ever shut your kid in the room and leave the poor child along and terrified? NO! You will get a little night light to be bythe bedside and allow the kid to slowly get accustom to be in the dark and slowly, when the kid is finally ready, the ligh night is no longer needed.

Same way, if you are constantly afraid of handling money, do you think the universe will give you money to handle? Of course not! The universe will resonate what your fears and beliefs. So since you are afraid of it, all the more you won't have it, or at worst, give you more money problems to handle! So until you get used to handling money, only then will you be on your way to be rich!

My money management technique will guide you through and you will find that managing money is not as hard as you think. In fact, once you've started, you will realise that it's so easy and you'll learn to enjoy every single moment of it!

4. The "Higher-Beings"
Now now, "higher-beings", I call you "higher-beings", not because I classify you as god, please note the inverted commas. You belong to this group of people who think that money is beneath you and that you are so spiritual that this earthy possession is just a trace and you are just constantly tested and tempted with this "earthy money" and you have to prove that you surface well above it. NOT!

People, get back to earth, while you are here, you might as well get used to our system here. Money is something you have to deal with. It provides for you, your family and your loved ones. It can also help others and even help them provide for their family. It can do miracles and can do good. You just have to know how to do it. Deal it as your level, not beneath you. Even if someone is your enemy, you cannot treat that person condescending, you need to treat that person as an equal with respect, only then can you turn this enemy to a friend. Likewise, since money is not your enemy, all the more you don't have to treat it this way, treat it as equal and then you can do so much good with it. Do good with money else it's not worth being rich.


Take some time to go through those classifications and identify which group do you belong to. Many will ask "So what have all these money management styles got to do with you?" Of course it does! You need to know what is your style so you can recognise your strengths and your weaknesses and then find out ways to strengthen your strengths and eliminate your weaknesses or turn them to your strengths instead!

Remember :
The first step to change is AWARENESS.
The second step to change is UNDERSTANDING.

So now that you are aware and understanding your money management style, you are a step closer to changing your current financial situation and making it BETTER and be where you SHOULD be.

Frankly, if you're not looking for a change, you won't be searching through the web, looking for ways to rectify your financial situation. The fact that you did search and land yourself here and reading this, means that you have taken a huge step towards acknowledging your situation and creating awareness for yourself.

Now that you are aware that you NEED to change, and you've understood yourself better, you just need to move on to learning the Money Management Techniques. This 5 part series will help you turn your financial life around!