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Master Your Type and Change Your Fortune

So, let's get to the nitty-gritty: What makes a Money Type, and what makes it yours?

As I began to analyze how people deal with money, I saw that certain groups of traits clearly defined a financial personality, which is what I mean by a Money Type. These are the dominant traits that drive people to prosperity, to ruin, or down a more secure path. If I've learned anything in doing the extensive research for this book, it is that everyone has a set of attitudes, fears, behaviors, and values that, when put together, fit into a distinct personality or Money Type. Dozens of traits make up the Money Types.

With thousands of cases to evaluate, I formulated sets of behaviors and beliefs that reveal how you care about, use, spend, invest, lose, and earn money. For example, one profile of a Money Type stresses striving for more. Another tends to deny the impact of money on their lives, while yet another takes excessive risks with money or simply prefers to coast along, intent on maintaining the status quo. Maybe you're tightfisted about money and don't like spending, borrowing, or giving to others. These traits are reflected in, for example:

• How you feel about money in general. Perhaps you think money is more important than anything else, or, conversely, is given too much importance.

• How your background affects the way you deal with money now. Perhaps you grew up with very little, and now do what you can to ensure you don't duplicate your parents' money struggles.

• What your fears and fantasies are related to money. Perhaps you fear poverty, and being out on the street, and therefore, you cannot spend money.

• What your financial situation is now. Perhaps you're doing okay, but you inherited some money you want to invest. You don't know where to put it to keep it secure and have it grow.

• Where your ultimate financial goals lie. Perhaps you'd like to buy a beachfront home to retire to and not worry about running out of money to live on.

Then I had another revelation: The best way for me to help people effectively was by tailoring my advice for the best fit within your dominant personal financial style. I could match a person's emotional experience of money with individualized practical financial advice. This was the key to effective change. In working out the types, I found that almost everyone falls within one dominant Money Type but has a characteristic or two from other types. As you read through the chapters devoted to each Money Type, you'll see how your complete financial personality is revealed to you more clearly.

Here, then, are brief profiles of the six basic Money Types. You'll probably see yourself in one or more of the types, but start out by focusing on the behaviors and money habits that most dominate your finances now. Be sure to read every chapter. There are true stories, confessions, revelations, and real financial turnarounds to inspire your own efforts!

Start with:

The Strivers

For you, the starting point is about acquiring, achieving, and letting others know how much you have. Since money and what it can buy are measures of success, Strivers find a way to play the part of the success story before they've attained the role. At their best, Strivers have energy and drive to make things happen. You make great entrepreneurs, who are willing to take a chance on new ideas, and invest in yourself. Strivers get into trouble when the focus is on overspending-and in forgetting how your income matches up with your expenses. Striving to live up to standards beyond your means tends to get you into debt and interpersonal troubles.

Money mastery for Strivers: If anyone can meet the challenge of gaining control of money by cutting back on nonessentials, it's you. You should still be able to afford some luxury items, but most importantly, you'll learn how to put money aside for the future and make your money grow.

The Ostriches

Ostriches define themselves as being baffled, intimidated, or embarrassed by money. Does this mean Ostriches are unworldly or not used to making a lot of money? Quite the opposite! You're in every profession, including law, teaching, medicine, blue-collar or middle-management jobs, or the arts. Whoever you are, I'm always struck by your fortitude and contradictions. You believe you'll always survive-even though it's hard for you to deal with money on a day-to-day basis. Some Ostriches are proud of their indifference to money while others ignore it until there's a crisis. Most of all, you feel confused or even angry about how you deal with your finances-a state of mind that arises from the misguided belief that you can't learn to master money basics. But of course, you can.

Another aspect of the Ostrich is a variation I call the White Knighter. Here, you hope that one event or person-a symbolic white knight-will rescue you from money problems. Winning the lottery or hoping for an unexpected inheritance keeps you dreaming and thereby neglecting your finances.

Money mastery for Ostriches and White Knighters: After understanding what steps you can take to help yourself, you'll never again believe that you're "just not a money person." You'll finally be inspired to snap out of inertia mode and take charge of your finances.

The Debt Desperadoes

Whether in debt because of overspending or being underfi- nanced, Debt Desperadoes are always coming up short. The spending addicts (or shopaholics) among you prefer the thrill of buying to the security of having. Then again, some of you are underfinanced because of having lost your jobs. Or you're left with no assets after some personal catastrophe, and you max out your credit cards and borrow to pay for staples.

Many Debt Desperadoes hit a wall, and the out-of-control spenders finally go cold turkey to stop the spendaholism. It's not uncommon for your type to bury yourselves deeper. You create more debt by borrowing to pay other outstanding debts and use still active credit cards to charge more stuff.

Money mastery for Debt Desperadoes: Can you finally work your way out of debt and prove to yourself that you can manage money? Yes! I'll show you how with a financial plan that's easy to follow. Remember: It's your money, and you deserve to have it work for you, not against you!

Copyright © 2006 by Amherst Enterprises, Ltd., and Lynn Sonberg Book Associates

Tags: Personal Finance

About the Author

Jordan Goodman is known as "America's Money Answers Man" because he has been answering Americans' questions about personal finance for over 28 years. He is a personal finance journalist who covers every aspect of helping people make money decisions. He worked at MONEY Magazine for 18 years, ultimately rising to be Wall Street Correspondent. He appeared weekly on Cable News Network on Business Day with Stuart Varney for 3 years, and was the weekly financial commentator on NBC News at Sunrise for 9 years. He did a weekly "Road to Riches" personal finance commentary on the Public Radio's Marketplace Morning Report for 6 years. He continues to appear on many call-in radio stations and TV shows and do speeches around the country, answering average American's personal finance questions and he also answers hundreds of emails sent to his moneyanswers.com website.