Just like your personality influences how you interact with people and the world around you, your money personality has a big say in how you handle your finances.
Have you ever thought about what your relationship with money really is? Well, your money personality can affect your financial situation significantly. Do you love to save every penny, or are you the type of person who likes to indulge in a little retail therapy?
We all have different money personalities, and they can evolve throughout our lives. Some people are natural savers, while others enjoy spending money on experiences and material possessions. Some people are risk-takers, while others prefer to play it safe.
Knowing and understanding your money personality can help you make better financial decisions, avoid making the same mistakes repeatedly, and achieve your financial goals.
In the course of this article, we’ll look at some of the common money personalities and how you can identify yours. So, grab a pen and paper, get ready to take some notes, and let’s dive in!
What is Money Personality?
Your money personality is essentially the set of attitudes, beliefs, and behaviours that shape how you think and act when it comes to money. Just like we all have distinct personalities, we also have different approaches to handling money, and our money personality can influence how we save, spend, and invest (or not).
In fact, certain quarters believe that the traits embodied by the 4 temperaments – Sanguine, Choleric, Melancholic and Phlegmatic, are directly linked with our money personalities!
Understanding your money personality is crucial because it can help you gain insight into your financial behaviours and habits, whether good or bad. By recognising yours, you can take measures to make better decisions about how you manage your money.
Whether you’re looking to save more money, reduce your debt, or build wealth, understanding your money personality is a key first step. You’ll be able to identify your strengths and weaknesses and develop strategies to improve your financial situation.
Benefits of Knowing Your Money Personality
Knowing your money personality can have many benefits when it comes to managing your finances. Let’s identify at least three reasons why knowing your money personality will benefit you.
1. Good understanding of financial behaviours and habits: By identifying your money personality, you can gain a better understanding of your unique financial behaviours and habits. This can help you recognise any patterns of behaviour that may be holding you back from achieving your financial goals and take steps to address them.
2. Ability to make better financial decisions: Understanding your money personality can absolutely help you make better financial decisions. For instance, if you’re a natural spender, you may be more likely to make impulsive buys that you later regret. By recognising this tendency, you can take steps to curb your spending and make more thoughtful purchases.
3. Improved communication with others about money: Knowing your money personality can also improve communication with others about money, including spouses, family members, and financial professionals. You can better communicate what your financial goals and priorities are, as well as work effectively with others to achieve them.
For example, if you’re a saver and your partner is a spender, you may have different priorities when it comes to money. By recognising these differences, you can work together to find a financial plan that works for both of you.
In a nutshell, understanding your money personality can lead to greater financial success and overall well-being.
Money Personality Types
There are quite a number of them listed out there by psychology experts, but here are some of the most common money personality types. Do note that you may very well be a hybrid of 2 or more. The key is identifying the predominant one.
1. Spender
A spender is someone who thoroughly enjoys spending good money on experiences and material possessions. They typically don’t bargain shop and go out heavily on things, including investment ideas. They may have a hard time saving money and may find themselves living paycheck to paycheck or in debt.
2. Saver
A saver is someone who enjoys saving money and fattening the bank account. Savers tend to be quite frugal and may be less likely to indulge in spontaneous purchases. He/she is rather motivated by the idea of building wealth. They generally have no debts and may be pegged as cheapskates.
3. Avoider
An avoider is someone who avoids thinking about money or discussing it with others. They may feel anxious or overwhelmed by financial matters and not want to face the music. They may have a hard time managing their finances well.
4. Worrier
A worrier is someone who is constantly worried about money and may be fearful of financial instability or not having enough money to meet their needs. They may be overly cautious with their spending and may have a hard time enjoying the money they possess.
5. Investor
The investor money personality is someone who is ever willing to take calculated risks with their money in order to achieve long-term financial growth. They are knowledgeable about smart investing and willing to spend time researching and learning about different investment opportunities. They are patient and understand that investing is a long-term game, with ups and downs in the market along the way.
6. Amasser
This personality is focused on accumulating as much money as possible, often through extreme frugality and a reluctance to spend money. They may prioritise saving and accumulating wealth over enjoying their money or investing it for long-term growth.
7. Money monk
Money monks are the modest people in society that tend to avoid trying to amass wealth because they align with the thinking that “money is the root of all evil.” They will rarely think about money. When they do, they are indifferent about the subject and feel money should not influence the important decisions in their life. This mindset may cause them to not have any kind of plan for their money.
Have you been able to identify which money personality you are?
Don’t worry if you haven’t nailed it just yet. There are quick measures you’d see listed a little later on including a quiz that would help you uncover yours.
I’d stress that you make it a point to understand your money personality as it helps you identify your strengths and weaknesses when it comes to money management. By recognising your tendencies, you can take steps to improve your financial habits and achieve your financial goals.
How can your money personality affect your ability to save?
Your money personality does have a significant impact on your ability to save money. Here’s a closer look at how different money personalities can affect your savings, as well as some tips for saving based on your personality type:
Spender: If you’re a spender, you may find it challenging to save money, as you may have a tendency to spend your money on experiences and material possessions. To save more, try setting specific savings goals and automate your savings to pay yourself first regularly. This way, you’re putting money aside without having to think about it.
Avoider: If you’re an avoider, you may have a hard time managing your finances, which can make it difficult to save money. To overcome this, you need be brave and face your fears. Try creating a budget and tracking your expenses, so you can get a better understanding of where your money is going. You may also want to consider working with a financial professional to help you get on track.
Understanding your money personality can help you identify the best strategies for saving money based on your strengths and weaknesses. By finding ways to work with your personality rather than against it, you can achieve your financial goals and build a more secure financial future.
Your money personality’s impact on your spending
Saver/Amasser/Investor: If you’re any of the 3, you may already be good at holding on to money and putting it aside. However, you may struggle to enjoy your money and may feel guilty spending it. To balance your desire to save with your need to enjoy your money, try setting a budget for discretionary spending and allow yourself to indulge in some treats from time to time.
Worrier: If you’re a worrier, you may be overly cautious with your spending and may have a hard time enjoying your money. To feel more comfortable spending your money, try setting specific goals outside of saving, and create a plan for achieving them. This can help you feel more in control of your finances and less anxious about spending your money.
Money Monk: Even if you are financially comfortable, it is important to know where your money goes and where you stand financially. Track your expenses, work with a budget and manage debt well to avoid financial surprises down the line.
Regardless of whether you’re a spender, saver, avoider, or something else, there are always strategies that can help you make the most of your money and build a secure financial future.
What is your Money Personality?
Discovering your money personality is an important step in understanding your relationship with money and achieving your financial goals. Here are some tips on how to discover yours:
Look at Your Financial Behaviours and Habits
Take a close look at how you spend money, how you save money, and how you approach financial decision-making. Are you a spender, saver, avoider, or worrier? Do you tend to make impulsive purchases, or do you carefully consider every financial decision? By examining your financial behaviours and habits, you can start to get a sense of your money personality.
Take a Money Personality Quiz
Another way to discover yours is to take a money personality quiz. These quizzes typically ask a series of questions about your financial behaviours and preferences and then provide you with a personality type based on your responses. There are different ones available that can be helpful tools in identifying your strengths and weaknesses when it comes to managing your finances. I captured a simple one you can take within 3 minutes in the next section.
Consider Seeking Professional Help
If you’re having trouble identifying your money personality or need help developing a plan for achieving your financial goals, consider seeking professional help. A financial coach for example can work with you to understand your money personality and create a plan that works for you. They can also provide you with tools and strategies to help you stay on track and achieve your financial goals.
Remember that everyone’s relationship with money is unique and there’s no right or wrong money personality. It’s okay to have strengths and weaknesses when it comes to managing your finances. Once you understand your money personality, you can develop strategies that work for you and achieve your financial goals. So take the time to explore your money personality today and start building a more secure financial future.
Money Personality Quiz
Here’s a quick 10-question money personality quiz that you can take to determine your money personality.
For each question, give yourself 1 point for answer (a), 2 points for answer (b), and 3 points for answer (c). Then add up your total score to determine your money personality:
1. When it comes to spending money, which statement best describes you?
a) I tend to spend money impulsively.
b) I like to shop, but I usually have a budget in mind.
c) I’m a careful spender and only buy things I really need.
2. How often do you check your bank account or credit card balances?
a) Rarely or never.
b) Occasionally, when I remember.
c) Daily or several times a week.
3. How do you feel about debt?
a) I don’t mind borrowing money to buy what I want.
b) I try to avoid debt, but sometimes it’s necessary.
c) I hate debt and avoid it at all costs.
4. When you receive a windfall of money (e.g. a bonus, tax refund, or inheritance), what do you do with it?
a) Spend it on something fun or treat myself.
b) Save it or invest it for the future.
c) Use it to pay off debts or bills.
5. How comfortable are you with taking financial risks?
a) I enjoy taking risks and have made risky investments before.
b) I’m willing to take calculated risks, but I prefer to play it safe.
c) I’m very risk-averse and prefer to stick with low-risk investments.
6. When it comes to saving money, which statement best describes you?
a) I struggle to save money and usually spend all of my income.
b) I save a little bit each month, but not as much as I’d like.
c) I’m a dedicated saver and prioritize saving over spending.
7. How often do you make a budget?
a) Never.
b) Occasionally, but I don’t stick to it.
c) Every month or every time my financial situation changes.
8. How do you feel about discussing money with others (e.g. family, friends, or coworkers)?
a) I don’t like talking about money and prefer to keep my finances private.
b) I’m willing to talk about money if it’s necessary or relevant.
c) I’m comfortable discussing money and think it’s important to be open about financial matters.
9. How often do you invest in your own financial education (e.g. reading books or attending workshops)?
a) Never.
b) Occasionally, but not often.
c) Regularly, and I’m always looking for ways to improve my financial literacy.
10. When it comes to financial planning, which statement best describes you?
a) I don’t have a plan and just hope for the best.
b) I have a vague idea of what I want to achieve, but no specific plan.
c) I have a detailed financial plan and review it regularly to stay on track.
Scoring:
10-17 points: Spender
18-24 points: Saver
25-30 points: Investor
P.S. – This quiz is very basic and not a comprehensive assessment of your financial situation. For a more in-depth analysis of your money personality and financial habits, consider working with a financial professional.
To Wrap Up on the Subject of Money Personality
I’ll conclude by emphasising the point that discovering your money personality is worth it, and understanding it is a crucial step towards achieving financial success. By recognising your attitudes, behaviours, and habits towards money, you’ll be better equipped to make informed financial decisions and create a life that aligns with your financial goals and values.
Whether you are a spender, saver, avoider, worrier, investor, amasser, or another type altogether, self-awareness is the first key step towards making positive changes and building a healthy relationship with money. Remember that there is no “right” or “wrong” money personality type! Each has its own strengths and weaknesses, and it’s up to you to use that knowledge to your advantage. By focusing on your strengths and working on your weaknesses, you can develop healthy financial habits and make choices that lead to long-term success.
So, if you haven’t already, take the time to explore your money personality and what it means for your financial well-being. Reflect on your spending habits and attitudes towards money, take money personality quizzes, and consider working with a financial professional like a personal finance coach.
Find this piece useful? Got any questions about this subject of money personalities? I’d love to hear from you in the comments.