Your Money Personality

Does prosperity have anything to do with your “money personality”? Apparently, yes! Your money personality defines your attitude toward money, and that essentially determines your financial behavior – making decisions regarding putting funds into savings for another a day, into retirement, spending on necessities versus desired purchases. Knowing your money personality as a small business owner can help you identify and overcome any potential losses that could negatively impact your ability to succeed in business.

Over the course of time, I’ve learned there are four basic types of money personalities. The following is a list of the most common personality types as well as the typical behavior patterns associated with them.

Money Hoarders These are people who do not like taking risks with their investments. They prefer to keep their money locked in a savings account and tend to be small spenders.

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Debt v. Equity Financing

When entrepreneurs begin to think about either going into business for themselves or taking their business to the next level, the financial and money concerns become the main challenge to address and/or overcome.

Debt and equity are the two main financing options from which most businesses can choose. Debt financing in simple terms means borrowing funds for the business for a fixed period of time at an interest rate pre-determined at the time of borrowing. Equity financing, on the other hand, refers to the capital raised for a company by selling common stock to individual or institutional investors. It leads to sharing of ownership in the business, depending on the amount invested. The following is a brief introduction to the advantages and disadvantages of both debt financing and equity financing.

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