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In my experience working with couples and individuals, I realized that, as we love differently, we also communicate about money differently. Savers and Spenders argue about money because they speak different financial languages. Therefore, if we can learn our dominant Financial Language, we can also understand other people’s Financial Language so we won’t argue about money. Money is a tool that shouldn’t have the power to destroy what God has put together.
Also, in these tumultuous economic times, we must understand our dominant financial language to get through cash flow crises.
Here are the 4 Financial Languages and what you can do to protect your financial foundation during uncertain times.
SAVING
The Saver’s pleasure principle is seeing their bank account grow because they need safety, security, and control.
As everything increases in price, they need to shop around to find the best deal that fits their budget. They like that B word, “budget,” because they can control where their money goes.
With the Federal Reserve raising the Prime Rate, the banks increase their deposit rates. So now is a good time for savers to deposit more money in interest-bearing accounts like CDs and Money Market accounts.
SPENDING
The Spender’s pleasure principle is the transaction, and retail therapy is REAL.
As everything (food, gas, etc.) is increasing in cost and with Fed Rate Hikes, credit also costs more.
When the desire to buy something fires up, now is the time to focus on how much they can afford so it doesn’t affect their spending power. Since loan interest rates are higher, what matters now is to “Act Your Wage” to minimize or avoid overspending.
INVESTING
The Investor’s pleasure principle is the Return On Investment (ROI), whether money, time, or people.
Right now, the market is unpredictable and volatile. Instead of looking for immediate ROI gratification, think long-term as investors. Consider the market being on sale.
That’s where “buy low, sell high” comes into play. Depending on your age or financial capacity, now may be a good time to buy more as an investor to get a long-term ROI.
NOTE: Consult a trusted investment adviser before making any drastic investment moves.
GIVING
The Giver’s pleasure principle is helping others. Whether by giving money, time, or resources, they want to know, “how can I help?”
In this economic environment, they are more sensitive to helping others but need to realize that they must put their “financial oxygen mask” on first. They need to know when to save, spend and invest for themselves to protect their financial stability.
It’s beautiful to be a giver, but they should ensure they financially take care of themselves to give to others.
To learn more about your dominant Financial Languages and how to become Fiscally Bilingual, get your copy of 4 Financial Languages.
