Financial Planning for each Enneagram Type
Dear Advisors,
If you provide values-based financial planning like I do, you may have found that helping my clients be aware of their relationship with money is an integral part of the financial planning process. How we interact with money is deeply personal to each individual. But did you know that our saving and spending habits can show up in our personality types?
I am a huge fan of the Enneagram in my personal and professional life. If you aren’t familiar with the Enneagram, it is a system of personality typing that describes patterns in how people are motivated, find fulfillment, interpret the world, and manage emotions. As a type 4, my need to be unique has influenced my decision to start a firm with a particular niche: serving only other financial advisors.
The Enneagram is a powerful tool you can use when helping your financial planning clients establish healthy money habits in order to reach their life goals. Plus, it’s fun for you and your clients to work out their type! Here are 9 common money mindsets and financial planning tips advisors can share for each Enneagram type.
Type 1: The Reformer
A sense of justice and doing things right are the main driver for Reformers. These clients pay close attention to the details and can be highly organized. If you have a client who actually likes talking budgets, they might be Type 1.
A Reformer’s built-in moral compass and attention to detail can lead to perfectionistic tendencies. Reformers should make sure to budget to give themselves personal spending money to deter feelings of guilt. Defining personal values and creating a financial plan that reflects what they are passionate about will be important to your Reformer clients.
Type 2: The Helper
Helpers, as the name suggests, feel happiest when serving others’ needs. They are often providers for their families and don’t hesitate to help friends and spend money to make others happy.
Helpers may find themselves agreeing to spend when asked, even if it’s not in the budget. To them, emotional currency is more motivating than seeing their savings grow. Helper clients need encouragement to put more emphasis on making rational decisions that serve the long term and do not put them in a bad place. They might need the reminder that it’s important to take financial care of oneself to be able to provide financial care for others.
Type 3: The Achiever
Achievers are big dreamers with big goals, often found in leadership positions. Feeling successful and having the admiration of others is what drives the Achiever – a corner office will do fine, thanks! It is important they remain connected to their authentic selves instead of focusing on how others perceive them or getting swept up in someone else’s definition of success.
Achievers can easily burn themselves out if they aren’t careful. When this happens, they are too exhausted to make wise money decisions, and may splurge on self-care or “shopping therapy”. Achievers tend to be big spenders and may see money as a status symbol. Help your Achiever clients define what success means to them so they have clear goals in mind. Your Achievers love to see progress and be acknowledged for accomplishing their goals.
Type 4: The Individualist
Individualists are the least motivated by money, compared to the other Enneagram Types. They are led by their hearts and are motivated by being true to themselves. Fours are typically emotionally engaged in life and will fully commit to projects and goals they believe in.
Fours often spend money on things that help regulate their emotions and are the least likely to save. Helping your Individualist clients clearly identify long-term life goals that align with their true identity is the strongest motivator and reminder for them to disregard fleeting emotions during daily spending decisions. It is also important that their life and career reflect their personal interests in order to feel fulfilled. If they aren’t there yet, they may be driven to add a career change to their financial plan or devote financial resources to a side hustle or hobby they find meaningful.
Type 5: The Investigator
Investigators tend to be thoughtful, independent savers. Often frugal, they enjoy a nice deep dive into financial strategy and take comfort in knowledge. Investigators may find financial data, reports, and analytics to be the most interesting and engaging methods to communicate about money.
Even though Investigators tend to be responsible with money, they also tend to be anxious about it. They can struggle with a scarcity mindset and hoard their money, worried that they won’t have enough for bad times. Helping your Investigator clients define what is “enough” in their savings and retirement funds will ease their anxiety and help them enjoy their money instead of simply holding onto it. Money’s no good if you don’t use it!
Type 6: The Loyalist
Hardworking, responsible Loyalists keep things running behind the scenes without needing recognition. They crave stability and find their motivation in close relationships and feeling safe. They often have a mindset of expecting the worst while hoping for the best.
Offset their anxiety when it comes to money management by feeding their love of learning. Help them build confidence by spending extra time on financial education. Having a long-term relationship with a trusted advisor will empower your Loyalist clients and help them feel secure in their decisions, including the decision to trust you with their finances.
Type 7: The Enthusiast
Enthusiasts are adventurers who want to experience life to the fullest. Their attention tends to bounce from one thing to another and are prone to spontaneous spending. Enthusiasts can be outgoing and have an exciting outlook on life that is contagious.
Sometimes the happy-go-lucky attitude hides fear and insecurity about their financial future. They’d rather focus on the next fun time than spend time working out their financial issues. Enthusiasts will need help and accountability with balancing instant gratification versus long-term goals. Consider helping them set up automatic processes for bills and savings so they can spend on the here and now without jeopardizing their future.
Type 8: The Challenger
Challengers are known to be confident, decisive, and protective. They like to feel in control. Their preferred method of building relationships is to engage in a heated debate on topics they find interesting and relevant. Challengers tend to be one of the highest earning types and will most likely appreciate conversations around investing money to build future wealth.
When a Challenger wants something, they usually get it, without considering others during the process. This can show up in their life goals and spending habits. If they have a life partner, it’s likely that their relationship would benefit from an advisor facilitating money conversations so that both parties are reflected in the budget and feel heard. Challengers may come across as intimidating and opinionated, but engaging in intense discussions is a meaningful way to build trust, respect, and a long-term relationship with them.
Type 9: The Peacemaker
Easygoing, gentle, and supportive, Peacemakers are motivated by keeping the peace and living in harmony with the people in their lives. They usually gravitate toward a simpler lifestyle and their purchases are useful rather than flashy. Peacemakers are happy to go along with someone else’s decisions, or to follow a group, to avoid causing conflict.
Your Peacemaker clients are prone to decision fatigue and will benefit from building a simple, repeatable budget. Also, directly asking what they want in life might put them in a stressful situation. Peacemakers can struggle to make their own decisions or to even speak up for what they want in financial planning conversations because they may perceive that as causing conflict. A less intimidating approach is to present a hypothetical situation. “If you didn’t have all your current obligations and money wasn’t a factor, what would be your ideal lifestyle?” This is a great way to help Peacemakers overcome their fear of disruption and use their voices in the financial planning process instead of simply taking a supportive role.
The Enneagram can be a powerful tool for your clients to better understand themselves and their relationship with money! You can find a free Enneagram test at this link. If you haven’t figured out your own Enneagram number yet, I highly recommend taking the personality test to experience it yourself first! What about you as the advisor? How does your personality affect your own relationship with money and running your advisory firm? If you are considering outsourcing your personal financial plan, please schedule a free consultation. I would love to explore fit and be a part of making yourself a priority again!
Warm regards,
Brooklyn
At Ellevate Advisors, we believe that advisors deserve to retire too. What does that look like for you, your family, and your business? Let’s figure it out together! Get to know me on my bio here, or schedule your free consultation here.