Northwestern MutualVoice: Understanding Your Financial Personality Is Key To Good Financial Choices

Apr 29 2014, 8:03am CDT | by

Northwestern MutualVoice: Understanding Your Financial Personality Is Key To Good Financial Choices
Photo Credit: Forbes Business

Have you ever made an irrational financial decision? And later, did you wonder what drove that decision? Turns out, the choices you make are a reflection of your financial personality. “Everyone has a financial personality,” said Michael Sheppard, CFP®, Northwestern Mutual regional director of financial planning. “And when you understand your financial personality, you’ll be better positioned to achieve your financial goals.”

The concept of understanding your financial personality is part of a relatively new field called Behavioral Finance. It combines psychology with economics to better understand why people make mistakes with their money, in order to help them make smarter financial choices.

So, null? Sheppard says start by taking cues from other areas of your life, such as your commitment to exercise.

  • Are you disciplined about exercise, or might you benefit from the motivation of a personal trainer?
  • Are your fitness goals specific enough, or might you benefit from a more detailed exercise plan?
  • Are your fitness goals too lofty? You don’t need to run a marathon during the first week.

By understanding how well you’re prepared to succeed, you can answer the most important question: Does your personality support—or get in the way of—your ability to reach your fitness goals?

In this excerpt from our most recent webcast, Three Not-So-Common Ways to Positively Impact Your Finances, Sheppard explains how those same strategies can be used when trying to achieve your financial goals.

To view the entire webcast, click here.

The Northwestern MutualVoice Team is a group of professionals who share insights and opinions from experts and industry leaders across the enterprise. Our vision is to inspire others to take action and plan for their financial future through topics ranging from financial planning, retirement planning and distribution strategies, wealth accumulation and preservation, to leadership, philanthropy and innovation. 

 
 

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