Have you ever wondered how your personality affects your spending? The Myers-Briggs indicator is a questionnaire designed to find preference for how people see the world and make decisions. If you haven’t already, take the test here, and then come back and see what your personality type says about your finances.
You are a master of the financial long game. When others react impulsively to the ups and downs of the economy, you have the capacity to remain practical and continue investing and saving wisely. You have learned that the key to building wealth is self-discipline and long-term planning, and you’re contributing to your investment accounts each month to keep yourself heading toward your goals.
You may, however, be inclined to turn down new financial opportunities for fear of hurting your plans. While you shouldn’t jump at every opportunity (as you well know) some risks can be very profitable. If you’re in your 20s and 30s, go out on a limb and take some financial risks. You don’t have to put it all on the line, but set aside part of your income to try something new, like invest in real estate or start a new business. You never know – it might pay off.
You like balance between your work, your goals and your loved ones. In order to keep everything organized (and you love being organized), you would benefit from creating and maintaining a strict budget. For optimum organization, leave your pen and paper behind and start an automated budgeting system online. A budget ensures that you know where your money is being spent and being saved. This takes the stress off of your shoulders, allowing you to spend more time focusing on what truly matters to you.
ISFJ’s are known for seeking harmony, which is great so long as you’re not getting involved in problematic financial situations. For instance, just because you’ve always had a savings account at your hometown bank doesn’t mean that it’s the best place for your money. Do your due diligence and shop around for high-interest savings accounts and low/no cost stock trading options. Don’t be afraid to make waves if it means improving your financial situation. Likewise, investing in your cousin’s latest business venture might be a poor financial decision for you in the long run. Make an extra effort to separate your relationships from your finances.
INFJs tend to derive the most pleasure from pursuing relationships and ideas, rather than financial security or success alone. In the hit book “Outliers,” author Malcom Gladwell explains that humans need three things to be satisfied in their work: autonomy, complexity and a direct connection between effort and reward. This is especially true for INFJs. Seek out a career where you’re achieving these three things and the money will follow.
INFJs have a tendency to keep their personal lives private. This can be problematic if you find yourself in a bad financial situation. For instance, if you’re struggling with credit card debt, it’s always beneficial for you to talk to your loved ones about your struggles. They can help you get back on track and keep you accountable. Closing yourself off from the rest of the world isn’t going to help anyone, so don’t be afraid to seek out help.
Your mind is wired for new ideas and long-term strategic planning, making you a financial force with which to be reckoned. You tend to see the world as a series of obstacles to jump over (and you’re a master at this), so for you, it’s best to set clear goals with your finances. Whether you want to retire early or prepare a college fund for your kids, make a strategy for getting yourself there. You’re driven by ambition and new ideas, so the sky is the limit when you have a goal. A well-crafted budget and an investment plan are powerful resources for someone with your planning skills.
Although you are skilled at analyzing situations and predicting outcomes, don’t think of yourself as infallible. You might consider having a certified public accountant (CPA) look at your plans. They’ll make sure your plans are as fool-proof as you think they are.
You have a knack for fixing problems, and this is especially true when it comes to your finances. You’re always looking for ways to quickly and efficiently pay down debt, whether that means refinancing your mortgage or student loans, or paying off high-interest debt before low-interest debt.
In most cases, your interest and passion for something grows the more you study it. You would benefit from reading personal finance books, which will surely spark your imagination. Money can be fascinating. However, if you don’t pursue knowledge about your financial situation, you could become bored and even lose track of your money. This can be especially dangerous when it comes to saving for retirement or paying bills.
Sometimes called the starving artist, ISFPs have a tendency to pursue creative and philanthropic outlets. While your goals are often benevolent, you tend to have trouble building wealth (at least in the tangible sense). You are, however, incredibly charitable, known for giving your time and money to foundations and causes. While it shouldn’t be your primary goal, these charitable contributions can turn into impressive deductions during tax season.
If you plan on investing money in the stock market, you would benefit by either using a CPA and/or setting up an automatic payment with your 401(k). ISFPs are known to be spontaneous, causing them to jump into new and exciting opportunities at the drop of a hat. These knee-jerk reactions can also be dangerous when you’re investing money, so it may be a good decision to put your money where it’s out of sight and out of mind.
You want a career that gives you fulfillment – that lets you make a difference in the world – and unfortunately, these jobs aren’t always known for their impressive paychecks. That being said, there are a handful of careers that allow you to serve the greater good while simultaneously padding your wallet.
An INFP’s real strength is in their curiosity and ability to perceive new ideas. Given the right planning, you could potentially pursue entrepreneurial endeavors. In order to do this, though, you will need to change your perception of failure. INFPs are known for being too hard on themselves. Your biggest enemy to your financial situation will inevitably be yourself.
The idea of gaining wealth may excite you at first, causing you to invest, open a savings account and start a budget all in the same day. But you could grow discouraged by your slow progress and pursue something else. Because of this tendency, it’s wise for you to have a budget and an accountability partner to keep you on track.
You enjoy thinking about the theoretical and abstract, which are great attributes of a philosopher but not necessarily a personal finance wiz. You also tend to pursue lower-paying jobs, with the average INTP only earning $36,000 each year. That’s a tough break, but it’s not a life sentence. There are still plenty of ways to help you get ahead in finance.
You enjoy having money, but you find money management to be uninteresting and difficult. While you shouldn’t ignore your financial situation altogether, consider automating your bill payments, budget, savings and investments accounts. Ramit Sethi, author of “I Will Teach You To Be Rich,” specializes in the hands-off money management plan, which allows you to set up your finances with a few clicks and then walk away. This gives you the freedom to think deep and meaningful thoughts without having to worry if you’ll have money in the bank tomorrow.
One of the biggest perks of being an INTP is that you’re not easily affected by criticism or change. While some people will run from opportunities for these reasons, you will continue to pursue them. Use this to your advantage in your career, mastering tasks that others find too difficult, which will likely result in additional income throughout your life.
You’ve got a soft spot for new (and expensive) toys. It’s not uncommon for an ESTP to make impulsive purchases, so set up guards to keep yourself honest. Sometimes, all it takes is setting up an online budget with Mint.com, which will send you alerts when you’re over budget. You should set aside some money each month to use as your “fun money,” but when you hit your limit, you need to rein yourself in.
If you’re struggling with overspending, make some changes, such as taking a hiatus from credit cards. When you pay with cash, it’s tangible, and you can see it leaving your wallet. The same isn’t true when you’re paying with credit, which is probably why people spend more when using credit cards.
If you haven’t already, you should consider starting a business on the side. Due to ESTPs inclination to learn, take risks and talk with people, they have a knack for entrepreneurship. If you decide to go this route, consider finding a partner or a team of people who can help keep you grounded. ESTPs are known for going full-steam-ahead without asking for help. Sometimes, especially when you’re starting a business, you need people at your side. Use their talents to complement yours, which will help you get your side business off the ground. Creating this extra income, especially passive income, is a great way for you to achieve your financial goals.
You’re a lover of life, charity and people … and you like to treat yourself from time to time. The ESFP personality type is often nicknamed the “entertainer,” due to the desire to be in the spotlight while simultaneously making others feel accepted, loved and comfortable. Unfortunately, entertaining can be expensive. Make sure your hospitable nature doesn’t overwhelm your budget.
Since relationships are some of your primary drivers, pursue groups and challenges that encourage you to get your finances together. For instance, maybe you should check out one of Dave Ramsey’s Financial Peace University courses, which can be found all over the country. At a glance, this may not be your ideal way to spend a Monday night, but if you go with a group of friends or a spouse, you’ll be more likely to learn and get the most out of it. Find ways to incorporate your love of people and your practical need for financial security.
Not only are you enthusiastic and imaginative, but you have the uncanny ability to understand the causes and effects of your actions. This carries into your finances, causing you to think twice before going into credit card debt or getting a high-interest loan. You also have a knack for reading people, which helps you weigh your options and stay clear of bad financial deals or offers. For instance, just because the bank down the street offers one interest rate on a savings account doesn’t mean that it’s the best option for you. By weighing your options and doing some research, you’ll quickly discover that there are high-interest online savings accounts that offer more than 1% in interest.
ENFPs are also known for seeking the acceptance of their leaders and peers. You tend to want verbal affirmation for your achievements. When considering your finances, let someone into your inner circle and talk to them about your finances. This may seem taboo, but regularly talking with a close friend or family member about personal finances can be a great way for you to jumpstart your goals. Confide in them when you fail and brag to them when you succeed. Invite them to do the same.
Your brain is built for playing the stock market. Not only are you alert and intelligent, but you also have the ability to quickly solve new and challenging problems. You know when to continue investing at a slow, methodical rate, but you also know that some situations call for quick changes to your portfolio. When there is an opportunity – financial or otherwise – you will be the one acting and reaping the reward while others are still thinking about their options. Hone these instincts through practice. Consider trying the app Robinhood, which provides free stock trading.
As an ENTP, you’ll constantly be facing down your biggest foe – boredom. If you feel that life’s becoming too routine, you tend to kick your current interests to the curb and start something new. This flavor-of-the-month mentality may work for some of your hobbies, but you need to nip it in the bud when it comes to personal finances. One way to keep your financial life interesting is to set micro goals for yourself. Instead of creating an exhaustive 10-year financial plan, break it up with goals for your savings or a plan for getting out of credit card debt. If you’re trying to buy a house or car, take a look at Boostup.com, which tracks your savings progress and provides rewards when you meet your goals.
Unlike ENTPs, you find great fulfillment from routine and long-term plans (and you expect everyone else to, as well). If you haven’t already considered retirement, take a few minutes to calculate how much money you’ll need during your golden years. Now that you’ve done that, make a practical plan for getting yourself there, including but not limited to a 401(k) and passive income opportunities. You are a tinkerer, testing different options that can improve your financial situation, such as developing income on the side and investing in the stock market. You’ll likely enjoy optimizing and organizing your finances, as you find disorder to be unacceptable. This, matched with your impressive willpower, make you a potential master of finances.
In terms of goals, don’t settle for being financially average. You have an exceptional gift for planning, meaning the sky is the limit for you and your goals. If you want to get out of debt quickly, save up for a new house or even retire in your 40s, you have the capacity to do so. These aspirations, however, may require you to make changes in your life that your peers find unusual. While your friends or family may live paycheck to paycheck (and expect you to do the same), you know that this kind of lifestyle can be a death sentence for your long-term goals. ESTJs tend to care too much about their social standing, and this can get in the way of where you need to be financially.
According to a study by Truity Psychometrics in 2015, ESFJs make the largest yearly income, bringing home, on average, $77,000. To put this into perspective, that’s more than the average incomes of INTPs and INFPs combined.
Between your warmhearted nature and your ability to support and work with others, you are a born leader. If you haven’t already, you should ask your employer about pursuing leadership opportunities in the workplace, as it will give you the opportunity to grow personally, as well as financially.
While you probably won’t have any trouble creating a personal financial plan, you may have a difficult time tweaking it or making necessary changes. ESFJs aren’t known for their flexibility or improvisation, which could cause them to get stuck in a bad financial situation. If, for instance, you’ve invested in real estate as a long-term investment, but you can’t find a tenant for years at a time, it may be best to either change how you’re marketing the house or simply count your losses and sell the property. But whether it’s out of loyalty or stubbornness (both of which are traits of ESFJs), you may feel inclined to stick with your original plan.
In some cases, this wait-out-the-storm mentality can be beneficial, but in other situations, it can just leave you wet, broke and miserable. Knowing the difference is key. One way to remedy this is to make contingency plans in case something goes belly-up. For example, give yourself a three-month period to find a new renter, but if you can’t, set a new plan into place to sell the property.
Highly attuned to the emotional and physical needs of others, ENJFs are known for being selfless leaders. Whether you’re serving in a foreign country or managing a company of your own, you have the ability to succeed in every way, and finances are no exception. You thrive under feedback – both positive and negative – so seek out people who are experts in finances. Whether that’s your CPA or your sister-in-law, make it a point to find people willing to give honest criticism about your financial goals. Tell them about your strategy for retirement or paying off debt and listen carefully as they critique your plans. Take their advice and run with it.
In many cases, ENFJs are too idealistic, and this is especially true for finances. While you may have met one person who got a 12% ROI in the stock market, you probably won’t be able to imitate that on a regular basis. Make sure you’re setting realistic goals for yourself.
You should also be wary when it comes to striking deals that involve money. ENFJs are quick to find potential in others, and this can cause them to be overly trustworthy. When dealing with partnerships, loans or financial deals, make sure you create a contract and have a lawyer read over the fine print.
Out of the personality types, ENTJs are known for making the second-largest household income, averaging $76,000 per year. You are a natural-born problem solver, picking out illogical or unproductive strategies and offering better alternatives. Because of this, your friends, family and peers may seek you out to get financial advice. If they don’t, you may feel the urge to give them advice anyway. Be careful when giving your opinion about the finances of others, though, especially your parents, as it’s often a touchy subject.
While people with other personality types often have a hard time sticking to a financial plan, you find it difficult to waver from it. Don’t get so caught up with your budget and your financial goals that you forget about other humans. If it helps, make a place in your budget specifically designated for interacting with others. You could take a neighbor out for lunch or ask the girl in accounting to go see a movie.
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