The Therapy of Your Finances
Article 26
Article 26 developed Financial Phenotypes to classify individuals based on how they handle money, we like to think of it as one's money personality. It helps discover and describe one's financial behavior, like how they spend, save, and make decisions about money. A financial phenotype is shaped by an individuals natural tendencies and external influences such as their upbringing, motivations, culture, and life experiences.
Assignment is based on the following Big 6 Factors contributing to one financial profile:
These factors are distilled into the following three core traits:
Influence refers to whether an individual's financial decisions are shaped more by internal factors (personal beliefs and reasoning) or external factors (market trends, societal expectations, and advice from others).
Role in Financial Phenotype
Individuals with high external influence are more reactive to market trends, economic changes, and social pressures, often making decisions based on popular advice or societal norms. This can lead to adaptable but sometimes inconsistent financial behaviors. On the other hand, those with internal influence rely primarily on their own reasoning and principles, making decisions based on personal beliefs and internal motivations. This can result in more consistent but potentially less adaptable financial behaviors.
Understanding your financial phenotype is crucial because it allows you to receive personalized financial guidance tailored to your unique habits and attitudes. By knowing your financial phenotype, you can better understand your strengths and weaknesses in managing money, making it easier to adopt strategies that work best for you.
This personalized approach helps you build better financial habits, avoid common pitfalls, and achieve your financial goals more effectively. Additionally, it can reduce financial stress and anxiety by providing clear, relevant advice and support that resonates with your individual financial personality.