A financial planner outlines the 3 mindsets that dictate how you approach your money

A financial planner outlines the 3 mindsets that dictate how you approach your money

A financial planner outlines the 3 mindsets that dictate how you approach your money

Commitment

People who have a "commitment mindset" are focused on taking care of others.

Pros: They are excellent providers who also consider the perspective of other people, not only when it comes to fulfilling obligations, but also in terms of how others will be affected by a decision they might make, Carbonaro writes.

Cons: However, people with this mindset might put other people's needs ahead of their own.

If this is you: "When working with a commitment mind, I try to ensure that all of their ducks are in a row in terms of long-term planning and paperwork," Carbonaro writes. "Life insurance, retirement plans, and other future needs are taken care of right away, so we can center our efforts on finding balance."

A financial planner outlines the 3 mindsets that dictate how you approach your money

Happiness

"Are you driven by a desire to have everything you want immediately because it makes you happy?"

Pros: Individuals with a "happiness mindset" are focused on the here and now, according to Carbonaro. "They're decisive, even with big decisions, and tend not to dwell on potential problems in the future," she writes.

Cons: The flaw in these happiness-driven individuals is they feel as if they don't have enough material things and can over-emphasize instant gratification. They might also have little in savings, and usually don't have a plan for emergency funds.

If this is you: You might also benefit from less-traditional savings plans, like flexible spending packages and automatic deposits into 401(k) plans or Roth IRAs. "Essentially, people with a happiness mindset need to have savings put on autopilot for them because it's just not their first priority," she writes.