At Magenta, our focus is encouraging a community of happy clients, ensuring they make the right money decisions to make their dreams become realities.
According to the Money Coaching Institute, just 20% of the decisions we make about money are logical; 40% are emotional and 40% are instinctive. Therefore, it is hardly surprising that many people feel uneasy around their money.
Julie Lord, Chief Executive of Magenta Financial Planning, explains how our relationships with money derive from childhood.
“Our relationship with money is based on unconscious influences that we are exposed to as young children. Neuroscientists believe this to be between age 2 and 12, when most of our brain development occurs. Many of these early influences, together with our experiences and parental attitudes determine our adult behaviours around money.
For example, one of my earliest memories about money, is that when I was 4, I and my younger sister, had to hide behind the sofa because the rent man was at the door. This has undoubtedly led to my ongoing insistence on having a sizeable emergency fund always, so that I will never have to do that again.”
Wanting to dispel the British stiff upper-lip attitude towards discussing money, Julie continues:
“Money in the UK is still a taboo subject – people are more likely to talk about their sex lives than they are about their money! And often when they do talk about money, it is to entirely the wrong people – usually people who may sound knowledgeable but are in fact just as insecure or worse still, ill-informed.”
Eager to support clients in achieving their long and short-term goals, we today ask the question ‘What money type are you?’. Below we share the ‘eight money archetypes’ which were developed by Deborah Price and the Money Coaching Institute. If you can work out what category you fall into, this may help you to understand your relationship with money better and how you can manage your spending and improve saving habits.
According to the theory, an Innocent is a person that puts their head in the sand when it comes to money matters. Not dissimilar to children, an Innocent relies on advice and opinion to make financial decisions.
Usually disguising themselves as an Innocent, a Victim will be a true professional at the blame game, putting their financial shortfalls down to various external factors and events. Though bad things may have happened to them, Victims tend to seek rescuing, feeling that they deserve a financial break.
With a powerful name, a Warrior stops at nothing to meet their financial goals. Being highly-driven and often found in the business and financial worlds, Warriors usually take advice from advisors but trust their own judgments equally.
In a financial sense, a Martyr puts others before themselves. Whilst eager to help a child, spouse, friend or partner, they do not always let go of the gifts they give; thought to be glass half empty types.
As a financial shortcutter, the Fool is no stranger to a gamble. Said to be a combination of the Innocent and the Warrior, a Fool struggles with making good judgements, often trying to succeed but often failing.
Uninspired by the materialistic, a Creator/Artist is happier living outside of a money-hungry world. Whilst favouring the freedom that money buys, an overarching feeling of disconnect sees them despise the material world.
The Tyrant is a money hoarder, frequently using money to control situations. Coming in the form of politicians, businesspeople and family figureheads, Tyrants do however lack fulfilment; a true testament to the idiom ‘money can’t buy you happiness’.
Last but by no means least we have the Magician; regarded as the ‘ideal money type’. Being incredibly aware of their own spending patterns and previous money types, Magicians hold the ability and power to meet their financial goals and objectives in a happy, positive state of mind.
Whether you are an Innocent, Warrior or even a Fool, allow the Magenta team to support you on your financial journey. Contact Magenta today to explore your financial planning and how you can develop your own plan, encompassing your money type so that you can be sure you are making the right decisions along the way.