We psychoanalyze everything these days – and now we’re adding money personalities to the mix?!
Isn’t it enough that we know our human design, horoscopes, and shadows? Can’t we just spend our money in peace?
I hear ya.
But money is heavily tied to emotions – which can quickly get away from you if you don’t understand what triggers them.
And if you don’t know your triggers…well, that could wreak havoc on your financial wellbeing. Which in turn seeps into every other aspect of your lifestyle and well-being.
This is where knowing your money personality type comes into place. By learning your habits, you can improve your relationship with money and move closer to your definition of financial success.
Let’s reflect.
Money Personalities: What Are They?
| Definition: Money personalities are habitual subconscious tendencies that define how and why you make decisions around your finances, from day-to-day spending to long-term goals. |
Let me start by saying: There are no good or bad money personalities.
Your money disposition is subconscious, based on your life experiences and fundamental life values. Which differ for everyone and which are largely out of our control.
So, just as you don’t pick where you are born, you also don’t get to decide how you instinctively relate to personal finance. You can make the most of your money personality by leveraging your strengths and mindfully managing your weaknesses.
But first, you need to know: what is your money personality type?
The Four Money Personalities
The four core money personalities are:
- Saver
- Spender
- Earner
- Stoic
We delve into each in more detail below.
Saver
Does the following quote speak to you?
“If saving money is wrong, I don’t want to be right!”
William Shatner
If so, you might have a Saver disposition.
Other signs you may have Saver tendencies:
- You value security above all else
- You save for the sake of savings rather than for specific financial goals, like a downpayment
- You are risk-averse (no stock market for you!)
- Frugality is your middle name (extreme couponing anyone?)
Those with the Saver personality often grew up with a childhood where money was tight. Hence their inherent interest in squirreling away large sums of money.
Advantages & Obstacles
| Advantages | Obstacles |
|---|---|
| Prioritization of long-term stability Financial savvy Sensible Diligence | Lack mentality Tendency to focus on worst-case scenarios Deprioritization of present-day enjoyments in favor of saving Anxiety |
Advice
It’s phenomenal that you are working to ensure future you has a secure, stable financial foundation.
But don’t forget to think about present-day you!
Set aside time this weekend to create specific goals, and then calculate what you need to save monthly to reach these goals. Spend whatever is left freely on things and activities that bring you joy today.
Tip: Consider working with a financial advisor to help you get the most out of your money tomorrow and today.
Spender
Does the following quote speak to you?
“Money is a scoreboard where you can rank how you’re doing against other people”
Mark Cuban
If so, you might have a Spender disposition.
Other signs you may have Spender tendencies:
- You value achievement and status, which manifests in high-end/luxury items like flying first class
- Price tags are irrelevant to your decision to buy
- Your biggest or most spontaneous purchases are the result of emotional highs or lows
Those with the Spend personality often grew up in a household heavily focused on “keeping up with the Joneses.”
Advantages & Obstacles
| Advantages | Obstacles |
|---|---|
| Money is a means to an end, not the end Generosity Relishing the present day | Risk of bankruptcy Difficulty letting go of control and independence over your finances, creating relationship strife Self-worth dependent on material possessions |
Advice
Before making spontaneous (or expensive) purchases, pause and ask yourself:
- Why am I choosing to spend money on this item?
- Does it fulfill a need or a want?
- What can’t I spend money on tomorrow if I buy this item? Is the trade-off worth it?
Tip: When online shopping, try leaving purchases in your cart for a few days before checking out. Chances are you’ll forget about the purchase altogether. And if you do decide to complete the purchase, waiting may get you a discount.
Earner
Does the following quote speak to you?
“I went into the business for the money, and the art grew out of it. If people are disillusioned by that remark, I can’t help it. It’s the truth.”
Charlie Chaplin
If so, you might have an Earner disposition.
Other signs you may have Earner tendencies:
- Money itself (not security) is one of your core values
- You spend the majority of your time and energy working or looking for new ways to generate income
- You frequently carry a high balance on your credit card because you tell yourself you’ll rake in more cash soon and pay it all off
Those with the Earner personality often grew up in a household emphasizing independence or with parental figures that frequently left them to fend for themselves.
Advantages & Obstacles
| Advantages | Obstacles |
|---|---|
| Prioritization of long-term financial health/freedom Dedicated Innovative Scrappy | Deprioritization of present-day enjoyments in favor of working Risk taker tendencies leave you prone to steep losses and gambling Impatience |
Advice
Find other things that bring you joy besides money.
For instance, maybe you use your financial knowledge to help others grow their wealth through volunteering or offering to help friends and family.
Teaching not your thing but not sure what hobbies you may be interested in?
Try asking yourself:
- What would I do if I had all the money in the world instead of work?
- What did I naturally gravitate towards as a child? Art? Sports? Reading? Cooking?
Tip: Before entering into new ventures, minimize risk by speaking with a financial advisor for an objective view of an investment’s viability.
Stoic
Does the following quote speak to you?
“What’s money? A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do.”
Bob Dylan
If so, you might have a Stoic disposition.
Other signs you may have Stoic tendencies:
- You consider money as bad or evil
- You give cash away to friends and family without being asked
- You depend on others to manage your money
Those with the Stoic personality often grew up in a household emphasizing independence or with parental figures that frequently left them to fend for themselves.
Advantages & Obstacles
| Advantages | Obstacles |
|---|---|
| Self-worth and happiness are not based on or tied to material possessions or a bank account balance Generous | Lack of focus or consideration for the future Debt-prone due to not monitoring your finances |
Advice
I know it sounds boring, but give yourself the gift of spending a few hours reviewing your financial situation.
Take note of what your spending your money on, how much you make, and what you owe. You don’t need to read a bunch of finance books to get started – I’ve got everything you need in my guide to money management.
Tip: You don’t need to check your cash flow and investments daily to manage your finances effectively. Instead, try automating your finances and checking in only periodically.
Which of the 4 Money Personalities is Yours? Let Me Know!
Did you get an “ah-ha!” moment while reading the tendencies above?
Are you a Saver, Spender, Earner, or Stoic?
Let me know in the comments below!