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Expert reveals the four different financial personalities – and how to manage your finances

A financial expert has revealed the four different financial personalities – and how to sort your money regardless of your type.

Melissa Browne, from Sydney, said that one of the biggest obstacles to getting on top of your money is not knowing which financial bracket you end up in, and identifying and recognizing your behavioral patterns is one of the best places to start.

“I’ve identified four different ‘currencies’ to help you define and recognize how you naturally behave when it comes to your finances,” the author of the new book Budgets Don’t Work (But This Does) told FEMAIL .

So what are the four types and which are you?

A financial expert has revealed the four different financial personalities - and how to sort your money regardless of your type (Melissa Browne in the photo)

A financial expert has revealed the four different financial personalities – and how to sort your money regardless of your type (Melissa Browne in the photo)

Melissa (photo) said that the four types can be divided into the Worker, the Creator, the Discriminator and the Relator, and knowing which one you are can help you manage your money better

Melissa (photo) said that the four types can be divided into the Worker, the Creator, the Discriminator and the Relator, and knowing which one you are can help you manage your money better

Melissa (photo) said that the four types can be divided into the Worker, the Creator, the Discriminator and the Relator, and knowing which one you are can help you manage your money better

1. The employee

Money in one word: pragmatic

Poll

What is your currency?

  • The worker 9 votes
  • The creator 4 votes
  • The discerner 0 votes
  • The Relator 0 votes

The first money type is the ‘Worker’, which Melissa explained, is the most pragmatic of the four personalities.

“The Worker believes that hard work will take you everywhere,” she said.

“They endorse the idea that the race is slowly and steadily winning and that an employee is hardworking, consistent, loyal, factually driven and likes to follow rules.”

If you are an employee, the expert said the best habits are to set up ‘extreme automation and weekly financial check-ins’.

“The employee will most likely make money through personal effort, saving and building real estate,” said Melissa.

“The things they should look out for or their weaknesses include rigid, overly cautious, and prone to burnout.”

2. The Creator

Money in one word: idealistic

The second money type is the ‘Creator’ and this type is characterized by being idealistic, open-minded and flexible.

“The most idealistic of the currencies, the maker believes that if you dream it, you can do it,” said Melissa.

“They are convinced that they are manifesting their own success and their belief system is in the vein of being able to create what I want.”

While the creator’s strengths are that they are flexible, decisive, optimistic, and problem-solving, Melissa said that the weaknesses are that the creator can make decisions and hate handling data.

“The maker is most likely to make money through entrepreneurship, manifesting or inventing new ways of doing business and investing,” said Melissa.

“The habits that fit this money type include money mantras and gamification.”

Melissa (photo) recommends that everyone has at least three bank accounts for savings, bills, and the everyday things you should buy

Melissa (photo) recommends that everyone has at least three bank accounts for savings, bills, and the everyday things you should buy

Melissa (photo) recommends that everyone has at least three bank accounts for savings, bills, and the everyday things you should buy

3. The discerner

Money in one word: intellectual

Third, there is the ‘Discerner’, whose financial institution is to ‘think and learn it’.

“The most judgmental and cynical currency, the observer believes you can think your way to success,” said Melissa.

“For many observers, education is the key to success, and their strengths are that they are logical, insightful, and intellectual.”

On the other hand, an observer can be judgmental, reflective and dismissive.

“The habits appropriate for the observer include financial challenges and habit piles,” said Melissa.

As an observer, you would likely make money through thought leadership, invest according to the experts, and outsmart the competition.

4. The Relator

Money type in one word: Collaborative

Finally, you have the ‘Relator’, the most ’empathic’ and ‘collaborative’ of the currencies.

“This money type believes that success comes through connection and you have to take care of the people you love,” said Melissa.

The strengths of this type come from interpersonal skills; they are often a team player, understanding, compassionate and resourceful.

On the negative side, a relator can put himself last, be gullible, and respond emotionally to purchases and investments.

“The relator will make money through connections, experience and relationships, patience in building for the long term, and stable and secure investments,” said Melissa.

“Habits that are appropriate for this personality type include making your goals emotional and being socially responsible.”

What are the three bank accounts everyone should have?

* ACCOUNT: This account should be for your normal accounts, including rent, internet, insurance, car loan refunds, registration, mortgage, utilities, telephone, internet, work expenses and school fees.

* SAVINGS ACCOUNT: This account is to transfer your regular savings.

* DAILY ACCOUNT: This account is for everything else.

Melissa explained that this system works best if you add up your bills for a whole year and then divide them by how often you get paid (e.g. divided by 12 for the monthly wages), then consider what your goals are and what your savings amount should be.

Your wages must be deposited into your daily account and then your accounts and savings accounts are automatically transferred to these two accounts. That way, your current self is taken care of by putting money aside for accounts, and your future self is taken care of with your savings and you can spend what is left debt-free.

Depending on your money type, you can add additional accounts, such as a holiday account, a fun account, a buffer account, a payment account, and more.

If you want to settle your finances after COVID-19, Melissa (photo) said the first thing to do is build your money buffer up to three months in expenses

If you want to settle your finances after COVID-19, Melissa (photo) said the first thing to do is build your money buffer up to three months in expenses

If you want to settle your finances after COVID-19, Melissa (photo) said the first thing to do is build your money buffer up to three months in expenses

How can you manage your finances after COVID-19?

Because much of the population’s finances are in disarray, Melissa said that in the coming weeks and months, thousands want to take over and settle their money.

“There are three important things to do after the coronavirus crisis,” said Melissa.

First, focus on building your three-month buffer of expenses.

“Most people have barely two weeks of cash in the bank, which is why there was so much financial stress caused by COVID-19.

“By focusing on building a money buffer, you’re less buffered by future shocks or setbacks, whether they are COVID-related or not.”

Melissa is the author of the new book, Budgets Don't Work (But This Does) (photo)

Melissa is the author of the new book, Budgets Don't Work (But This Does) (photo)

Melissa is the author of the new book, Budgets Don’t Work (But This Does) (photo)

Then Melissa said that you should never be too proud to ask for help.

“Whether it’s your expenses or receiving all the different income subsidies you are entitled to, you should never be afraid or too proud to ask for help,” she said.

“This is a marathon, not a sprint.”

Finally, you need to understand your ‘money story’.

“If you have a money story where you receive your self-esteem of how much you contribute financially to the household, you may find yourself struggling even more during this time,” said Melissa.

‘Alternatively, if you have a money story where you don’t believe you are enough, you could blame yourself and blame yourself because you are not financially prepared for COVID-19 and you think you won’t get through financially unharmed . ‘

The expert added, “By recognizing and understanding our money stories, we can avoid becoming paralyzed and financially sabotaged by choosing to rewrite them as something that will serve us financially.”

Melissa is the author of the new book Budgets Don’t Work (But This Does), published by Allen & Unwin. Recommended retail price € 29.99. from now.

What are the best saving tips that Melissa swears by?

* Saving money is easiest if you are enthusiastic about your goal and you have set up an automatic system so that money is transferred to your savings without having to do it manually. Make automatic transfers every month as soon as you get paid.

* Use a stress log so you know what you’re spending and when you’re stressed, so you don’t sabotage your savings in times of stress.

* Go back to your bank statements from the past three months and pause, exchange or cancel expenses you no longer use.

* Find extra ways to earn extra income and start saving faster.

* Identify your money type and establish great habits according to that type.

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