Hey guys, it's Chelsea from The Financial Diet, and this week's video is brought to you by credit repair, and today we are going to talk about the money habits you must avoid based on your personality type.

If There's one thing that we hope you learned from TFD it's that no-money advice is one-size-fits-all, while some financial gurus might go on and on about how your morning latte is the single thing holding you back from your financial destiny. We believe that if you truly get a lot of joy out of that morning latte you should make a place for it in your budget and not feel guilty about it but beyond individual spending choices there are plenty of habits and approaches to how you handle your money that should be customized based on your personality the truth about almost any good habit is that you're not going to stick to it if it's really difficult for you, so doing something in the perfect way is no good if it means you're going to stop doing it after two weeks.

And while there are some things that are just a complete noon for everyone, such as totally ignoring the state of your bank accounts, there are a million ways to get to the place that we all want to get, which is financial stability and health and a key to getting there is knowing your personality type and knowing what to avoid because of it. So, let's get right into it with six money habits to avoid based on your personality type. The number one personality type is the avoidant habit of waiting too long to prepare, so I am definitely someone whose worst quality could be defined as extreme avoidant tendencies.

Anytime something feels overwhelming or scary or upsetting to me, I will avoid dealing with it at all costs and everything from a much-needed dental appointment to paying a bill has come back to bite me in the ass in a very serious way, but the funny thing is when you know things are going well, those same things you can tend to avoid can suddenly feel like something you want to do. As an example, when you're worried about how much money you have in your bank account checking it feels like something completely dreadful but when you know you're doing well It can almost feel fun to check and just bask in the number and The truth is, when you have this personality type, it's incredibly easy to wait until the very last day to do something. So one of the biggest steps you can put in place to avoid the potential disaster of being late on something or missing it all together is to set up tongue of reminders and roadblocks for yourself well before the thing has to happen.

If, for example, you know you owe a certain bill on a certain day, set up a few reminders beforehand if you can even write down the due date for something as earlier than it actually is, you may even trick yourself into getting something done early. One thing I've also found is very helpful is to set up little mini celebrations for yourself to reward yourself for doing something you tend to procrastinate on. For me, I've gotten in the habit of going to a nice dinner that I look forward to once I finally gotten my yearly taxes out of the way, because, as a business owner, they are a huge, and as many things, as you can put in place to track the things you tend to ignore such as apps that will send you financial reminders or update you on the status of your various accounts and scores the better The point is, if you tend to avoid things, you better prepare and prepare to do things in advance.

Number two personality type, hesitant habit of obsessing over cost per use So, one thing that we tend to stress on TFD is how important it is to think of purchases not just in terms of upfront cost but in terms of cost per use when you buy something that seems rather expensive on the surface but is something that you can use for literal years and get hundreds of uses out of it you realize pretty quickly that that purchase was a lot better than the alternative of buying something at a lower quality that you would have to frequently replace think things like a really high-quality pair of winter shoes and coats. But if you're someone who is extremely hesitant to spend money and hates to part with a single dollar and I know there's a lot of you out there cause thinking about cost per use. Can become obsessive, and it can become a race with yourself to see how low you can get that number.

The truth is, yes, there are probably items in your home that you can work down a little more and get a little bit more use out of, but things aren't meant to be used until they're totally falling apart, so learning to balance getting a good amount of use out of something with not becoming overly obsessed with how many times you use it ensures that you'll be timing purchases for when you've gotten good use out of something, but that thing isn't totally falling apart mark is someone who tends to wear clothes for example until they are completely threadbare, and I'm sure the cost per use on everything in his closet is under a penny, but at what cost to his dignity? Number three personality type overconfident habit saving what's left over so overconfident people and this tends to be another bad habit of mine have a tendency to be so confident about their financial future that they don't really think in terms of the individual steps it will take to get there and contend to justify any spending choice they might want to make in a given moment because they imagine that there will always be something left over or some new money to come in the future that will make up the difference There's always a new side job you might pick up a new bonus you might get or even just being more responsible when the next paycheck hits and promising yourself to save whatever's left over at the end of the month is a great way to end up with nothing at the end of the month because trust me when you have that overconfident personality that things will work out or the money will figure itself out you can justify essentially any purchase Maybe it's I'm new in this city, or I'm seeing a friend I haven't seen in a while. Or I had a great day, or I had a bad day there are always reasons to be spending money you shouldn't be spending, so Instead of promising yourself that you'll save whatever is left over, especially if you have this tendency, your savings are the first thing you do.

Every month, not only should they be automated out of every paycheck, but anytime you get unexpected money, you should follow our 8020 rule of immediately putting 80% of it away so that with the 20% you can indulge exactly as you want to without guilt because not only does the money situation often not work itself out It's quite the opposite. The more overly confident we are that money will come, the less we actually realize what it takes to get our number-four personality type guilty habit. Not checking for sale prices, so similar to the overconfident category.

The guilty money personality tends to make purchases they probably shouldn't make except that they are racked with guilt after the fact, and here's the thing when it comes to finances Guilt is useless. It's not going to undo that purchase unless you could possibly return it. In which case, lean into the guilt and return it, but more importantly, if it's something that's happening over and over again.

Clearly, guilt is not deterring you from making these bad choices. It's just sort of making you feel ok for it by beating yours off up afterward, and this guilt might come from how you were raised with money. For example, if you were raised with parents who were super, super cautious about spending or from something you might have done in your past like maxed out your credit cards or damaged your credit score but regardless of what is actually making you feel guilty one of the best solutions is making sure that the purchases you make are done in the best way you can make them and that means getting super-religious about finding the best prices for things you should allow yourself to spend money on those things that feel good but aren't completely perfectly totally necessary you just shouldn't overspend on them for me for.

For example, I've gotten really obsessive about always checking RetailMeNot before I buy something online, which actually almost always has some kind of sale for every store. I honestly don't know what's going on with it. But you can also always ask a clerk at a store about any possible discounts when something might go on sale, or you can even just follow sales online.

Many retail stores and even industry magazines and websites will announce sales, so you can be sure to buy things when it's right to buy them the point is you can channel that guilt into treating spending like a game where your job is to get the best deal possible so that when you actually do make the purchase you can feel good about it because honestly there is no point in walking around guilty for money you've already spent for an outfit you're already wearing number five personality type consumerist habit signing up for emails point-blank if you are someone who loves to shop your email is sacred never give it to anyone and the same goes if you're someone who loves to scroll Instagram or Pinterest and feel so envious about what you're seeing it's so easy for that desire to shop because it feels good or that desire to shop because it makes us feel less inadequate to override our natural instinct that says you do not need this and unlike the guilty spender if you're someone who has a habit towards spending for the sake of spending chasing deals all the time is going to be a terrible idea because you're always going to feel like wow This totally justifies that unnecessary thing I already wanted to buy and the most dangerous way to set yourself up for that is by giving out your email to any retailer. Because trust me, they will always be in you're in a box with what sounds like an amazing deal and that impulse you got to already spend from scrolling Instagram is going to be kicked into overdrive and, in addition to avoiding giving out your email picking one day every month or every other month when you get to do a little shopping for yourself means that it's something you can look forward to and something you can contain rather than something that's always ongoing. Your digital space should be a place where you can share with friends, learn, and feel better about yourself, not a space that's making you max out your credit card and speaking of credit cards number six personality type emotional habit memorizing your credit card number So here's a story from my former life as a retail goddess.

I used to work at a shoe store that was very upscale, like the cheapest shoe that we sold at this store was like three hundred dollars. And I remember one of the girls that I worked with at this store was from a very wealthy family and the only reason she was working at this store was like five hours a week is, so she could get a discount on all of these amazing shoes, and she spent not only her entire paycheck but also a lot of her other money on those shoes. And I remember feeling like that was the chicest, most amazing thing I've ever heard of and being like physically racked with jealousy about it.

And I remember one day she came into the store and the other salesgirl was raining her up on the little credit card machine. And she actually didn't have her credit card She'd left it in her Mercedes SUV which good god, and so she was like Oh, it's no big deal. And she just said out the number, expiration date, and code of her credit card.

And I was like Wow, that's maybe the coolest thing I've ever seen. I will never ever forget that but it's so funny because I now look back, and I was like, wow That girl had a serious, serious problem with spending and when I think about it clearly, that girl was using spending as like everything to her because every emotional response could be met with spending when money is not an issue and when you memorize your credit card like that, everything can be an amazing spending moment but for most of us who are not in the position to be walking into designer shoe stores and reading off your credit card number to the salesgirl like Obviously, you have to know the store to do that in person, because otherwise, it looks like you're stealing someone's credit card. Memorizing a credit card number is especially dangerous online for so many of us.

The few seconds it takes to get up off your ass from wherever you're browsing the Internet walk over to your purse get out your wallet and actually type out your credit card number is the number one thing that will prevent you from making stupid online purchases overriding that natural failsafe button by memorizing the credit card number just means that almost anything you can want on a whim while browsing the Internet is something you can have and if you're someone who tends to be an emotional spender or someone who defaults to buying things because you're bored, which I think we've all been there at some time or another you are especially vulnerable to having that information right on hand so above all make sure that you do not memorize your credit card number or give yourself any easier access than necessary to spend when you feel I don't know essentially any emotion up to and including being tired and if you're someone who's already made not-so-great money decisions based on your personality type and may have gotten yourself into a little bit of trouble credit wise, you should check out credit repair, basicallycreditrepair.com is your own personal mentor for repairing, building and maintaining your credit. They help you build a customized strategy for improving your score. Work directly with the credit bureaus to dispute any dings on your report and teach you how to understand both your own score and the rating system if you feel like you're struggling to build or rebuild good credit and want someone to guide and advocate for you the whole way check out credit repair.com at the link in our description to learn more and as some of you know The Financial Diet is a production of complexly which produces a ton of awesome other YouTube channels, including scishow psych which recently did an episode about if money can't buy happiness, then what does?

So definitely check that out at the link in our description and don't forget to hit the subscribe button and to come back every Tuesday and Thursday for new and awesome videos. Bye.