Personal Finance

The 5 Money Personality Types.

Which One Are You?

Your money personality type is the sum of your personality and your beliefs about money. It influences your relationship with money and impacts your financial situation.

Here are the five money personality types and how you can work with them to make sound financial decisions.

The Saver

While it’s good to know where your money is going, it pays to question your motives for saving as much as you do. Is it out of fear? And a sense of lack?

If you have saved enough for a rainy day (equivalent to 3 to 6 months' income) and are investing some towards your long-term goals (e.g. retirement), maybe look at how money can add to the quality of your life.

Are there things or experiences you are denying yourself out of this sense of lack? Fear of running out of money? Seek balance in your approach to money.

The Spender

As a “Spender” you enjoy using your money for your immediate pleasure. You find it difficult to save money and prioritize how you use your money. It may be difficult for you to put aside enough money for future-oriented purchases and long-term financial goals.

You get satisfaction from spending money on gifts for others. You may spend most or all the money you earn, and you may even be in debt. Compulsive in your spending? Emotional shopper?

If you are a spender, ask yourself what need you are trying to meet in your spending habits. Dealing with loneliness? Or the need for approval and acceptance? Can you find different ways of meeting these needs, so they don’t cost as much?

Seek credit counseling if you are having trouble paying off your debt. Start a savings plan and pay yourself first in order to get into the discipline of saving money.

The Money-Avoider

You avoid the subject of money like the plague, not because you think money is the root of all evil but because you feel inadequate discussing it. You don’t even look at your credit card or bank statements.

You worry about money but prefer to keep your head in the sand.

If you are a money-avoider, start dealing with your fear of what appears like a daunting subject. Check your bank and credit card statements. Look at creating a retirement plan.

Make a list of financial goals and get the help of a financial advisor. Read books and take courses on the subject of personal finance. Educate yourself on all aspects of money.

The Accumulator

Motivated by the adage, “Go Big or Go Home”, you like the prestige that comes with money and quality items. You take risks to see the money grow. Your motto is Go Big or Go Home!

Ask yourself if your relationship with money is closely tied to your self-worth. Remember, your net worth is not equal to your self-worth.

The Money-Averse

You see money as the root of evil and the cause of many social problems in this world. You may not even be aware of this.

Your subconscious mind may be communicating that “rich people are entitled” or “money is what causes problems in our society.

Question your beliefs around money. Money is merely a tool (#ad). It’s the meaning we ascribe to it that causes the issues we face regarding money.

Bringing it all together

Money means different things to different people. If you see money as evil, you will draw to your attention evidence of this. Just as if you saw money as fun, you will be drawn to things around you that confirm this belief.

The state of your finances is evident in your relationship with money. If you want to improve your finances, start to look at your beliefs about money. Decide what you want to achieve and how you want money to show up in your life. Adjust your beliefs accordingly.

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