When Personality Tests Tell You A Lot About Managing Your Finances

Several serious studies have been conducted to show the added value of personality tests… in the management of our finances!

Their results are a good way for you to discover and identify certain behaviors that would be harmful… for your finances.

PERSONALITY TESTS:

A personality test is a questionnaire that you must fill out spontaneously, without giving yourself time to think. Unlike logic tests, the domains are linked to everyday life, to reactions to certain personal and/or professional situations. All the responses are analyzed by authorized experts and the results are communicated in the form of a report. They provide information about the personality of the person who completed the test. That is to say the way of acting, of reacting, of thinking. It also emphasizes values.

In USA, passing tests of this type is particularly fashionable. You will also find many of them on the Internet.

When personality tests are offered, these are generally used to discover your colleagues from a different angle and thus act in harmony.

THE MBTI PERSONALITY TEST

Based on the theories of Carl Jung , founder of analytical psychology, it groups people’s preferences into several axes:

1. Extrovert (E) / Introvert (I): you draw your energy from your inner world or, on the contrary, from the world around you.
2. Sensation (S) / Intuition (I): your way of processing information is more focused on what you are given or you prefer to interpret and make sense of it.
3. Thinking (P) / Feeling (S): In making decisions, you are logical, rational or you first observe people and circumstances.
4. Judgment (J) / Perception (P): in connection with the outside world, you prefer a structured way of life or you are spontaneous, open to other possibilities and information.

These 4 axes define our personality in 4 letters.
So, if I am “  IIPP ”, I have an “Introverted/Intuition/Thinking/Perceiving” personality.

You will find many sources of information to learn more about these tests and the results.

WHEN YOUR TYPE DETERMINES HOW YOU INVEST

But where this test interests us is in the added value it can have in the context of financial advice.

He recommends focusing on 2 personality axes: Thinking/Judging and Feeling/Perceiving . The 1st have tendencies to analyze and organize, which favors the choice of investments on the basis of research and strategic planning. The latter tend to base their financial strategy on their beliefs and values.

Thus, these 2 axes make it possible to better understand your way of investing, your way of making decisions. And if your beliefs are limiting, you know that by replacing them with other beliefs, you’ll be more likely to invest effectively.

Another study conducted in 2007 by Jennifer Selby Long concluded that “  Perception ” types, and particularly women, have great difficulty managing money . Inevitably, these types of women end up with very low salaries and no involvement in managing their finances.

So if you were lucky enough to take an MBTI test, dive back into your results. Check the consistency of these with your current way of managing your finances and adjust your financial strategy accordingly.

PERSONAL FINANCE-ORIENTED TESTS

I also discovered that special tests have been developed to determine your “financial” profile.

There is in particular the “  Moneymax Money Personality Profile  ” developed by Kathleen Gurney. This test identifies 13 character traits that shape the way we make our financial decisions. These traits are:

1. Participation
2. Pride
3. Emotion
4. Altruism
5. Risk taking
6. Self-confidence
7. Power
8. Work ethic
9. Satisfaction
10. Self-determination
11. Expenses
12. be thoughtful
13. Trust

From these 13 traits derive 6 types of “financial” profiles:

1. Contractors
2. Hunters
3. “Achievers”, in search of performance
4. Players
5. Producers
6. Money Masters

As with any test, each of them has its advantages and disadvantages. But they allow you to better identify yourself and understand your relationship to money. The goal, if you wish to have an optimal management of your finances, is to be in the category “  Masters of the money  ” (Money masters).