Money Personality and its effect on Net Worth

As with a unique thumb print, everyone has their very own personality traits, and when it comes to dealing with money, they have their own Money Personality.

To have a common language in describing who we are, there are various words and methods to decipher. Two common descriptive terms are extroverts and introverts, used by psychiatrist Carl Jung in the 1920s in developing a common language among researchers. 

These two dimensions of Extraversion and Neuroticism (the latter derived from Introversion) had three more dimensions added by psychologists and scientists over the decades to form what is now commonly known as the Five Factor Model or the Big Five.

The three remaining factors making up the Big Five are: Agreeableness, Conscientiousness and Openness. Everyone is said to have these five dimensions in our personalities, in varying dosages generally expressed as high, average or low.

Why the Big Five? Understanding the workings of our own Big Five gives us insights into and may even predict how we will react, think, decide, feel and behave when circumstances arise. Investors are faced with unexpected situations and quick decision points. They cannot afford to be surprised by their own emotions or reactions when these occur.