Financial Planning

Easy Ways to Identify Your Money Personality

Are you by nature a spender or a saver? Do you spend less and save more or enjoy using your money for more immediate purchases? Some say that recognizing your “money personality” is the first step towards understanding what drives your financial decisions and helping you to establish a healthy financial situation (USA Today 20171).

Although money personalities have been analyzed in a variety of ways over the years, most individuals can identify with key parts of a particular type of profile. Experts have uncovered four most common financial personality types, all of which you may be a mix of or evolve from one to another, depending on your stage of life. But identifying your personality type is the first step to learning how to manage your money beliefs.

So, which money personality do you most embody?

The Spender

This individual is prone to spending money or taking financial risks on a regular basis. This personality type often makes impulse purchases, buys and sends loved ones thoughtful gifts often, and doesn’t worry as much about credit card debt or emergency funds. The Spender isn’t usually a bargain shopper but would rather invest in name brand items.

The Spender is comfortable with spending money, isn’t concerned with debt, and often makes bigger investment risks (Investopedia 20192).

The Debtor

While this personality type isn’t necessarily trying to spend outside of their means, they often don’t keep track of purchases or know what their accurate financial status looks like at any given time. Debtors generally spend more than they earn and aren’t concerned about investing.

The Debtor is not concerned about how much money they spend or have at any given time (Investopedia 20192).

The Saver

Sometimes referred to as the “hoarder”, this personality type is the opposite of the Spender. These individuals are overly concerned about spending money on anything and always need to have a reliable savings account built up for emergency situations.

The Saver generally has no extravagant debts, are frugal with their money, and always know how much money they have in their bank accounts (Investopedia 20192).

The Investor

Also referred to as “the security seeker”, this money personality type is careful with their finances while also actively looking for ways to increase their financial value. This requires some education and help from others who have been successful with their investing strategies.

The Investor wants their money to work for them so they can one day have a passive investments that cover their needed income goals and cover bills.

Discovering your money personality is the first step to understanding your relationship with money, and from there you can better identify any issues you regularly encounter and safeguard against bad habits. Your money personality also helps you to create a strategic plan to create a well-rounded financial future by creating and adhering to self-set rules that will help you balance your economic decisions over time.

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Content Sources
1 - Jayakumar, Amrita (September 2017), Your ‘money personality’ is first step to financial health, retrieved from USA Today
https://www.usatoday.com/story/money/personalfinance/2017/09/13/your-money-personality-first-step-financial-health/664118001/
2 - Smith, Lisa (August 2019), What Is Your Money Personality Type? Retrieved from Investopedia
https://www.investopedia.com/articles/basics/07/money-personality.asp