What if I don’t agree with the money personality quiz?
The money personality quiz is by no means an official psychological test. It is simply a tool to help you start thinking about how you tend to think about money. The important thing is for you to be honest with yourself about your feelings with regards to finances. You wouldn’t believe the level of mental gymnastics some people go through to rationalize unhealthy financial decisions. Financial decisions are not intrinsically “good” or “bad.” We want to understand why we behave the way we do.
Getting rich quick really isn’t part of financial literacy?
At its most fundamental, financial literacy is about understand financial decisions with your current and predicable financial situation. It isn’t really about sudden expansions in your income stream. Here is the thing about avenues in which some people have obtained vast wealth quickly: For every person who has achieved wealth in a particular way, there are thousands who have tried and failed, often due to luck. Perhaps someone gambled heavily on a volatile stock and won. There are tens of thousands who have tried a similar gamble and lost. For every Internet personality who has gone viral, there are tens of thousands with equal or greater talent who have not gone viral. This is all related to something called “survivorship bias.”
What if I really want to achieve a goal that isn’t at all possible with my current finances?
Honestly, I would not concentrate on that goal for the time being. Some people may argue that an unattainable, lofty goal is good motivation, but I would argue that concentrating on something out of reach will create feelings of disappointment, despair, and frustration. Instead, I would set a goal of expanding your income with the same STAR attributes. Expanding your income may take quite a while, but there are routes to doing so. Once you’re in a situation in which your lofty goal is achievable and realistic, then put your energy (and money) into it.
I just want to learn about finances. What if I don’t care about the psychology stuff?
Life is complicated and difficult. Actions have consequences. I can tell you all the consequences of financial decisions, but that alone won’t turn you into a financial guru. Let’s take smoking as an example. You’ve been told from many different resources that smoking is an action with only negative consequences. Why do some people never smoke once? Why do some people choose to try smoking? Why do some people get addicted? Those questions have different answers for each person. It is the underlying psychology of each person that influence decisions. Given the exact same information, no two people will have the exact same reaction or decision. People can make some really unhealthy financial decisions with life-altering impacts. I am hoping that with some self reflection, you will understand your own urges and impulses and make decisions that are well-informed.
