YOU have inherited RM5 million! What would you do with all that money?

If you were the happy-go-lucky type, you would spend most (if not all) of it within a year without regret.

If you were the conscientious type, you would pay off all debts, spend one-third, and invest the rest with solid plans for the future. Or you may just give the cash away.

We all have different needs, motives and purposes in life. Thus, our behaviour is a reflection of our different perceptions, thoughts and beliefs.

Hippocrates (370 B.C.) told of Melancholic, Choleric, Phlegmatic and Sanguine temperaments.
A more recent profiling system classifies our characteristics as DISC -- Dominance, Influence, Steadiness and Compliance.

We all have one primary characteristic, with its own package of strengths and weaknesses, directing our daily behaviour and... money patterns.

The Melancholic (Compliant) is a perfectionist, analytical, planner, worrier. He enjoys art and things of beauty; is indecisive, thoughtful, loyal, precise. They are mentors, counsellors (Mahatma Gandhi) and healers (Princess Diana). This detailed planner would make sure that all insurance and savings plans are in place for the future.

However, this worrier would take a long time to make decisions in, say, purchasing a home. He may be overly conservative with his investments.

The Choleric (Dominant) is determined, impatient, goal-oriented, insensitive, likes being in control, takes risks; is opinionated, practical, decisive. They are creators (Walt Disney) and leaders (Margaret Thatcher). The dominant Choleric would have his finances in top order. The self-sufficient Choleric would organise all matters himself.

The Phlegmatic (Steady) is laid back, peaceful, dependable, unmotivated, orderly, a saver, slow to decide, introverted and diplomatic. They are guardians (Mother Teresa) and providers (Martha Stewart).

The steady Phlegmatic would certainly live within his income; he is your bargain shopper. With his laid back attitude, however, he may end up with disconnected Astro services or electricity, as bills are always paid at the last minute, if not, late.

The Sanguine (Influential) is talkative, persuasive, impulsive, usually unorganised, fun loving, restless, can be late and enthusiastic. They are artisans (Ernest Hemingway) and entertainers (Madonna).

The influential Sanguine would be a natural "big spender" whose motto is "we only live once".

So any of the above traits ring a bell? Our personalities are a combination of all four, with differing intensities.

You may be a Sanguine at home, but a Melancholic at work. For example, Datuk Siti Norhaliza entertains (Sanguine) with business acumen (Melancholic, Choleric).

The negative tendencies can be managed. But first, you need to admit this weakness. Secondly, be open to changes. Prepare personal financial statements to understand how your money is spent.

Come up with an income statement (showing your income and expenses) and a balance sheet (showing your assets and liabilities). Cholerics and Sanguines who feel budgeting and details are a waste of time, should just hire someone to do the details.

Manage Your Spending

Tendencies

Spending patterns need differing treatments, depending on your tendencies.

Understand Your Profile

Saving and investing is another area of behavioural concern. A professional could assist all temperaments, be it the overly conservative Melancholic, the laidback Phlegmatic or the short-term thinking Sanguine.

Cholerics need to trust someone else to look into their controlled domain.

Sanguines and Phlegmatics need to ensure they have sufficient insurance protection and retirement savings.

In conclusion, you can manage your temperament so long as you identify and understand your personal tendencies.

Agensi Kaunseling Dan Pengurusan Kredit (AKPK) is an agency set up by Bank Negara Malaysia to provide financial education, credit counselling and debt restructuring services to individuals. AKPK services are free of charge. For further details, please visit www.akpk.org.my or call toll-free1-800-88-2575