In today’s society, worrying about finances is not the exception but the norm. According to PwC, 57% of all employees cite finances as their highest source of stress. The Beacon Group of Boulder at Morgan Stanley reflects on statistics such as this by analyzing the psychology behind saving and stress. An in-depth analysis shows how finances are not only affecting your pocketbook but your nervous system as well.
Everyone approaches finances differently, and that is normal. But when your saving habits, or lack thereof, start negatively affecting your life and the lives of those around you, that’s when it becomes a problem. Identifying your patterns and recognizing how your personality type may impact your spending habits will likely have a positive effect on your overall finances.
The Beacon Group of Boulder at Morgan Stanley identifies four financial personality types: confident money managers, short-term strategists, value-based planners, and laid-back balancers. Confident money managers think long-term and have a higher probability of not only making but sticking with a financial plan. Short-term strategists are methodical planners who focus more on short-term financial goals than long-term. Value-based planners look to the future and, in turn, make financial decisions grounded in personal values. Lastly, laid-back planners do not put pressure on finances and instead direct their attention to living life and following their gut. These categories illustrate just how much your personality and value system may influence your financial decisions. Once an individual becomes more aware of their habits, they can be smarter with their money.
Financial stress can affect one’s sleep, mental and physical health, self-esteem, and personal relationships. The feelings that arise between seeing an empty bank account versus a thousand dollars in savings are very different. Everyone wants to feel secure. Your habits and resulting emotions, or vice versa, also reflect how money was handled or discussed in childhood, your education, and your overall understanding of money. If the topic of money was regularly associated with negativity growing up, you might approach financial situations with a lot of anxiety. If you studied economics and finance in college, you likely have a higher level of confidence when dealing with money and a better understanding of the system’s fundamentals.
So how can everyone improve their relationship with money, regardless of personality type or background? The Beacon Group of Boulder at Morgan Stanley recommends viewing money as a tool, educating yourself, focusing on specific goals, understanding that things can change, and keeping the faith. Seeking support from a financial consultant can also help aid in all of this. The Beacon Group of Boulder at Morgan Stanley offers services tailored to your individual financial needs and goals, such as portfolio strategies, progress tracking, risk management, and much more. When you invest in a partnership with The Beacon Group of Boulder, you are investing in a successful financial future.
Morgan Stanley Smith Barney LLC. Member SIPC.
Information contained herein has been obtained from sources considered to be reliable, but we do not guarantee their accuracy or completeness. Dana Albright and Rebecca Batizy are Financial Advisors with the Global Wealth Management Division of Morgan Stanley in Boulder, Colorado. The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be appropriate for all investors, as the appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Investing involves risks, and there is always the potential of losing money when you invest. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC, or its affiliates. CRC4364660 04/25