Can you describe your money personality? Did you even know you have one?
Your money personality describes how you behave, feel, and think about money. This includes emotions that drive the financial decisions you make.

There are four money personality types.

Spenders

Their behaviour is driven by the need to feel better about themselves. As a result, they are often very outgoing and generous to their friends. They love attention and feel that their social status is the most important aspect of their lives.
Spenders often spend more than they earn, which lands them in debt. But they are usually comfortable with debt.

Savers

Savers save to feel more secure. Some believe savers are stingy and have a scarcity mindset because they cannot appreciate financial achievement other than the gratification of saving for it. They are focused on generating interest, which means they are not getting the best returns on their savings. They are scared to invest because they are terrified of losing money.

A hoarder is an extreme version of a saver. In extreme cases, the money comes in but always stays under the mattress. They will not spend on necessities. I met a hoarder who furnished her home with items she found in dumpsters. She chooses her clothes from clothing banks. This lady is happy to use one teabag ten times before throwing it out.

Avoiders

A money avoider needs help meeting deadlines, such as paying bills on time. This gets them into trouble, and they avoid dealing with the fallout of not paying bills on time. An avoider will ignore bank letters leaving them unopened. Avoider hates making budgets or financial planning. These tendencies stem from feeling anxious about money or incompetent to handle it alone.
Most people start off as avoiders when they transition from childhood to adulthood. We are used to the bank of Mum and Dad, and suddenly we are cast adrift. It’s time to sink or swim. Most people swim but some sink.

Money Monks are extreme avoiders. And according to money monks, money is immoral, the source of all evil, or a tool of corruption. They want to avoid making money and only make enough to keep the body and soul together.

Investors

Investors’ money personality is the best place for our money. An investor has a balanced approach to money. They understand money and how to put it to work to make money. The concept behind their decision is for their assets to provide enough passive income to live off of so they can spend their time pursuing other activities that are important to them. This blog is designed to help you, me, and everyone else become investors.

How You Develop Your Money Personality.

The Influence of Parents

Your parents are your first teachers. Their examples may have a positive or negative impact on your money personality. For example, if your parents were frugal, you might have learned the value of saving money for emergencies. On the other hand, if they were careless with money and never concerned about paying bills on time or budgeting, you’d likely take after them.

For example, a child who grows up in an exceedingly thrifty home where all of their clothes are hand-me-downs and is constantly told that “money doesn’t grow on trees” may grow up to be a spender. When we are children, it is natural to fantasise about better days. I recall fantasising about how I would handle money differently when I grew up.

The point is that our parents have an impact on us. We could either replicate what they did or do the exact opposite.

Your Community

Your neighbourhood is another critical factor that affects how you think about money. This includes your family, friends, and coworkers.
If everyone in your area spends a lot of money on expensive things like cars and watches, you will likely do the same. People want to live as well as those around them. We often don’t know that an unconscious fear of rejection by our peers or culture drives our actions.

Your Personal Finance

A person could have more than one money personality. But there is always one prominent characteristic. Changes in circumstances have the potential to resurrect less dominant money personality tendencies.

I am a saver/investor, but there have been times when I have displayed other personalities.

There was no money and a lot of expenses and debt. The thought of budgeting made me anxious because it would confirm my worst fears. I felt overwhelmed, and the only way I could cope was to avoid my money troubles for a while.

I became a spender two separate times.
The first event occurred after my father died. I was so depressed that the only thing that made me happy was spending.
The second time was following a significant break-up. I felt ugly, unattractive, and low in self-esteem. My solution was to undergo a radical makeover. It was pricey. The trilled lasted 3 hours, and I was back to being sad.

Final Thoughts

Does Your Money Personality Stay With You For Life?

If you know more about your money habits, you can make changes to help you get closer to your financial goals.

It’s great to save, but you should save with a plan. Having money for emergencies is a good reason to save. Once you have enough saved for emergencies, look for ways to make your money work harder for you and give you better results than a savings account.

Seek Help

We all avoid dealing with our finances sometimes because other things in life crop up. If handling your finances gives your crippling anxiety, seek help. If you have people around you that you trust and they appear to be doing well with their money, you could ask them for help. You could check with your bank. They are always willing to help because it is in your bank’s interest if you get good with money.

Budget, Save and Invest

Spenders are fun people, but assessing how your habits shape your financial future is a good thing to do. What is the point of blowing it all now and living a life of misery in future? Set yourself a budget. Allocate money for fun and build a habit of saving and investing.

The best thing you can do is to understand why you love spending and if there are less expensive ways to enjoy your life.

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