Do you think money will solve all your problems? Is it the root of all evil? Or do you try and avoid thinking about it at all costs?
Everyone has their own money personality. It’s formed through your attitude, experiences, and habits with money. Often, these develop from the emotions that saving, spending, and investing generate within you.
In personal finance, as in most areas of life, your feelings drive your actions and habits. Over time, these habits determine the amount of financial success you’ll have. Once you recognize this and your money personality, you can take steps to improve your financial situation. You’ll have ways to manage your money better, boost your sense of financial wellbeing, and achieve your dreams faster!
Money Personality #1: Big Spender
This money personality is easy to spot. Big spenders are consumers and their appearance is important to them. They’re fashionable and like to make a statement. These individuals drive expensive cars, dine in the best restaurants, and live in extravagant neighborhoods.
Big spenders don’t keep up with the Joneses, they are the Joneses! They have no problem buying big ticket items on a whim or going into debt to get what they want. Often, their short term wants far outweigh their long term goals!
People that have a big spender money personality usually earn a lot of money. They look rich, but work so they can spend. These individuals consume at such a level that often they’re debt-ridden, have little savings, and are handcuffed to their job!
If they do manage to save, they take big risks on the investments they make. They buy the hottest stocks, day trade, and gamble. All in an attempt to earn a fast buck.
The big spender’s money mantra is, “Work Hard and Play Hard.”
How To Improve A Big Spender Money Personality
- Set SMART financial goals
- Use a pay yourself first budget
- Understand needs vs wants
- Learn the difference between being rich vs wealthy
- Try a money saving challenge
Money Personality #2: Shoppers
People with this money personality find great satisfaction in buying. At heart, they’re bargain hunters who get caught up in the thrill of looking for the next deal. Many of them can’t resist spending, even if it’s on something that they don’t need!
These individuals don’t have financial discipline, especially when they’re faced with a sale. They’re so focused on buying and consuming now that they typically don’t have an emergency fund, savings, or a financial plan for the future!
Shoppers usually live above their means and have credit card debt, too. Most are aware they carry a balance, but it’s of little concern or they choose to ignore it. They continue spending and can’t stop because the joy they receive from buying is too great!
There is some good news for shoppers. They can be successful and don’t have to give up spending money altogether. They can create wealth by becoming value investors and bargain hunting for assets!
How To Improve A Shoppers Money Personality
- Practice conscious consumption
- Track every purchase you make
- Ask yourself how beneficial each product will be in a week, month, or year from now
- Use a system to get debt free
- Learn to hunt for investment deals
Money Personality #3: Debtors
People who have a debtor’s money personality are different from shoppers and big spenders. They generally don’t buy to feel good or to impress others. Instead, they choose to spend little time or effort thinking about money at all!
Debtors spend money at their discretion. If they see something they like, they buy it regardless of how much it costs. These impulse buys add up which causes them to overspend and take on debt. Most of them consume at such levels that once they do decide to cut back, they’re still unable to get ahead!
These individuals are not interested in money and pay little attention to it. They don’t budget, track their spending, or get free money offered through their employers. As a result, their personal financial statement is full of liabilities. They may even be on the brink of a financial hardship and not even know it!
How To Improve A Debtors Money Personality
- Set SMART financial goals
- Establish limits on your monthly expenses
- Write down every purchase you make
- Create your financial order of operations
- You may need someone to help you
Money Personality #4: Savers
Savers are the polar opposite of big spenders. They don’t care about fashion, the latest trends, or trying to impress others. Most have low burn rates and spend just enough to cover their bare necessities.
These people don’t get satisfaction from spending and buying goods. Instead, they enjoy saving their money and watching their stockpile grow!
People with this money personality live frugal and don’t like wasting money. They’re efficient, reuse items for as long as possible, and are penny pinchers.
Savers are conservative and very careful with money, too. They don’t take risks and have reserve funds for every contingency imaginable!
Some of them don’t trust banks or other financial institutions, either. They prefer to keep large amounts of money at home where they can watch it and make sure it’s safe.
How To Improve A Savers Money Personality
- Review your money mindset
- Invest to beat inflation
- Set spending goals
- Give yourself small treats
- Start a new hobby or plan a vacation
Money Personality #5: Investors
This group is the most money conscious of them all. They’re extremely aware of the amount they make, spend, and save. All of which allows them to invest and receive joy from watching their money grow!
Investors spend and earn money differently than the other personalities. They pay themselves first and use that money to buy assets. Rather than spending first and hoping they’ll have enough left over to invest.
People with this money personality are also careful decision-makers. They have strict investment criteria which reduces their risk and improves their chances of success. This, along with the power of compounding, grows their nest egg and helps them achieve financial freedom faster!
Investors have financial success because they build good habits and look for personal growth opportunities. They commit to being avid learners who read, take classes, and find ways they can improve.
How To Improve An Investors Money Personality
- Reflect on what is enough money
- Figure out where you are on the Hierarchy of Financial Needs
- Consider the positive and negative impacts your money is having on the world
- Practice sustainable investing
- Think about your legacy
Most people don’t have just one money personality, they have multiple! It’s common to identify with parts from several of these types.
For example, as a tightwad I describe myself as a saver and investor. But to a degree, I’m also a shopper and big spender. I enjoy saving money, finding investment deals, and spending in the areas that make me happy!
Many people find that it’s difficult to change their money personality all at once. But, over time you can. Take small steps. With each one you make, you move forward, grow, and get closer to reaching your dreams!
Which money personality do you identify with most? Comment below.
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