WHATS YOUR MONEY PERSONALITY?
Understanding your money personality is the first step towards financial health, helping you uncover your approach to spending, saving, investing, and where you need to take action.
Knowing your money personality can help you understand how to make your money work for you, how to save more, and overall how to make smarter financial choices as each person has their own outlook on finances and way of doing things.
There are seven money personalities and based on the relationship different people have with money, this article is to help you find out what your money personality is.
Let’s dig into the different money personalities shall we. The first money personality are the:
- Compulsive Savers — These set of people view money as a source of security and are very frugal. They generally have a fear of irrational spending and while this might seem like a good thing, we all know that there is a pitfall for these kinds of people — Some Compulsive Savers are so afraid of losing money that they go their entire lives without spending any of what they worked so hard to save. Sad right?!
#Money advice: It’s really all about moderation; learn to find a balance between saving money and enjoying life. Think about where you see yourself in the future.
You should totally read Do You Binge Spend for more.
- Compulsive Moneymakers — Top priority for these money personality people is growing wealth. They believe life is better when one earns more. This isn’t entirely a bad thing but when compulsive moneymakers are on a roll, they can take very risky decisions that affect them, neglecting everything else that is important to them.
#Money advice: Recognise that there’s more to life than money. Your Health, spending time with family and friends, showing love to people around and even using some of your resources to put a smile on their faces will go a long way.
- Indifferent-to-Money — This might seem weird to you but yes, there are people who are indifferent to money. Yes they are financially well off but they also believe that money should not influence important decisions in life. Many people who are indifferent to money feel they only need a modest amount of money to be happy, which is a healthy mindset. But things can get ugly if they’re not responsible with their finances.
#Money advice: Even if you are financially comfortable, make it a point to know things like where your money is going, what your monthly expenses are, and where you stand on debt. Doing all these things can save you a lot of financial stress in the future.
- Saver-Splurgers: Now these set of people are caught in between saving and spending. They tend to save for a good amount of time, only to give in to impulsive spending. Saver-Spenders often end up stressed and disappointed in themselves for working so hard to save money, only to lose it so quickly.
#Money advice: Don’t lose sight of your financial goals. Save as you should and spend on things that are necessary. It’s okay to splurge once in a while but be careful of the damage it might do to your account.
- Gamblers — Gamblers often take big risks with money. The thrill of risk and promise of reward is a pleasure unto itself that they can quickly get lost in.They are also caught between the traits of spenders and moneymakers. When gambling gets out of control, they tend to borrow against things like their retirement money or current assets and make a mess of their finances.
#Money advice: The goal is to be introspective and strict with the financial risks you take. Balance and security are essential to have, so start setting aside monthly savings before making any big financial decisions.
- Worriers: The worriers are always thinking about money. They lack the confidence in their ability to achieve financial freedom. It doesn’t matter how much money these sets of people have, you’re constantly worried that you’ll lose it at any given moment.
#Money advice: Seek positivity around money conversations. Work on understanding where your financial worries are coming from, by keeping track and talking to a financial advisor.