Interesting Awareness

[maat55]

I've been reading a book that has me thinking of personal finance from a more mental approach. This is not completely new to me, but gives me more insight into how people discuss finances from a different mindset. This may be common knowledge to some and news to others, but here goes.

I learned more in depth that there are four types of mindsets towards money. There are Spenders, Builders, Givers and Savers. Now before you criticize, i'm aware that everyone has some amount in allocation, all of these trates. It's up for arguement as to wether we all have a larger degree of one.

The reason I bring this up is that, not all, but many regulars here, IMO are savers first. Primarily savers, IMO, are less likely to have financial problems and primarily spenders are most likely to have problems.( For the record, there are cons to being a saver as well as there are pros to being a spender.)

One important thing I learned is that DW is not as much a spender as she is a giver, based on how she spends. Another thing is that, Savers giving technical advice to a spender is not as easy as it sounds to a saver.

I could better turn this into a blog, but thought it might be food for thought to any group. Add to it, ignore it, what are your thoughts?

[disneysteve]

I think I can figure out the definitions of spender, giver and saver but what exactly is a builder?

[maat55]

Originally Posted by disneysteve

I think I can figure out the definitions of spender, giver and saver but what exactly is a builder?

The book gives example for a builder as a business owner, one who views money as a tool for creating, opportunist. Along with the examples are ways inwhich each group can misuse their trate. It gives insight as to combinations, also.

This is where it claims that savers may have weakness when it comes to investing, builder savers may be too conservative, where builder spenders may be too aggressive. But it states that when builder-savers are well portioned they may do better than others.

I avoided giving definitions for fear of excessive text.

[bjl584]

This sort of sounds like something that I learned in a Marketing class. There are basically 4 different types of consumers that companies have to target in different ways to influence them into purchasing their products or services. Each one has different traits and views purchasing products in different ways, just as your example has people divided into 4 basic groups that view and handle their personal finances in different ways. I'm willing to bet that these two different groups of people are closely related. Example, A person that is a spender is probably more likely to fit into a marketing group of an early adopter or trendsetter of some new product. This could be an interesting topic for a term paper. Too bad I already graduated.

[maat55]

An example of what this thread means to me is my attempt to influence my older brother to use better financial sense.

IMO, my brother has always been a spender. He has filed BK at least twice and is currently in debt to his eyeballs. I have found that merely giving good technical advice is not enough, attracting or developing a saver in him is the biggest task. Some develope this trate through fear and some through anger (Me). And some may never at all.

As a former spender, it wasn't until I got angry at a bank that changed me to a saver.

[maat55]

Originally Posted by bjl584

This sort of sounds like something that I learned in a Marketing class. There are basically 4 different types of consumers that companies have to target in different ways to influence them into purchasing their products or services. Each one has different traits and views purchasing products in different ways, just as your example has people divided into 4 basic groups that view and handle their personal finances in different ways. I'm willing to bet that these two different groups of people are closely related. Example, A person that is a spender is probably more likely to fit into a marketing group of an early adopter or trendsetter of some new product. This could be an interesting topic for a term paper. Too bad I already graduated.

I agree, everything is probably mental before it becomes fiscal.

[kork13]

The concept seems pretty interesting, essentially describing financial habits as personality traits. Everyone has some level of each trait, it's just a matter of how strongly each one influences the individual.

What's the book/author? might be interested in finding it...