What’s Your Money Personality?

Have you ever wondered why you behave the way you do with money? For instance, do you find it hard to create a budget and stick to it? Do you let your friends handle the check when you go out, or do you cringe when they suggest splitting the bill when you only had a salad??

According to Morgan Housel, the author of The Psychology of Money, your personal experience with money is based on 80% of how you think the world works. Your background, your lifestyle, and your upbringing shape your money personality.

So, with that in mind, what unique money tendencies do you possess? What is your money personality, and how do you deal with the personality type you identify with? Read on to discover.

1. The Indifferent-To-Money.

Also known as the money monk, the indifferent-to-money personality rarely thinks about money. They get by without giving much thought to money and rely on others to handle financial matters. In extreme cases, they believe money is bad, dirty, or evil, and too much of it can corrupt a person.

The upside: You feel strongly that money shouldn’t influence important decisions in life. You also believe you don’t need much money to be happy, which is a healthy mindset.

The downside: You walk around in oblivion of what is happening in the financial world. So, you miss out on investment opportunities. Also, because you rely on others to handle financial matters, you risk destabilisation in the event of death, sickness, or betrayal of a partner or spouse. Additionally, you sabotage money-making opportunities since you believe money is evil.

How to improve it: Start engaging more directly with your accounts and become aware of the money coming in and your expenses. Also, check into therapy, unpack why you believe money is evil, and work towards changing that mentality.

2. The Worrier.

Regardless of how much money the worrier makes, they are constantly apprehensive that they could lose it. For a worrier, money represents security, so they tend to hoard it and never spend or invest it. They lack confidence in achieving financial freedom and are risk-averse.

The upside: Fear is good; it keeps us safe and alive. As a worrier, you can anticipate and prepare for life challenges. You know that life is not all unicorns and roses, which is good.

The downside: Overwhelming fear eats away at your happiness. It limits your investment options, hindering your growth. You stay stuck. What’s worse, when you are constantly worried about the present and the future, it robs you of the joy of today.

How to improve it: Shift your mindset from scarcity to abundance. Seek people who speak positively about money, and pace yourself when triggered. Also, talk to a financial advisor and work on understanding the source of your financial worries. Additionally, discuss the suitable investment for you; having money work for you and accrue interest will increase your security and confidence than if it is stashed at home.

3. The Compulsive Money Maker.

The compulsive money-maker believes the key to happiness is more money. They spend most of their time and energy trying to make as much money as possible. Therefore, they always discuss money-making opportunities and investing in real estate, cryptocurrency, or forex trading. They also derive pleasure from the approval and recognition of their financial success.

The upside: You are always on the lookout for more money-making opportunities. You are quick to invest and have a wealth mindset.

The downside: As a compulsive money maker, money is at the top of your priority list. So, you neglect other aspects of your life, such as relationships and health. You are the type to overwork and risk burnout while chasing the bag. You miss your kids’ recital to close deals with your business partners on a Saturday afternoon. Also, you attach your self-worth to your financial success, which can dangerously affect your mental health in the event of bankruptcy.

How to improve it: Recognise that money is a tool to make your life and those of your loved ones better. Use that money to buy more time to be with the people you love. Use your money for charity, supporting various courses for underprivileged people. Or take your family on that vacation you have postponed for two years now!!

4. The Compulsive Spender.

Regardless of the situation, compulsive spenders dispose of their money as quickly as they get it. They tend to spend money on things that they don’t necessarily need. Their outgoing personality compels them to treat people to something special, one time too often and sometimes for no specific reason. They don’t care where the money comes from, so they can accrue massive debt on their shopping spree. Additionally, they use shopping sprees as retail therapy for instant gratification when emotionally distressed.

The upside: As a compulsive spender, you are spontaneous. You live an exciting life; somewhat of a free spirit, as you can randomly throw a party for yourself and others instantly. Also, you know how to make your loved ones feel special with your gift.

The downside: You are always in debt because of your heavy spending. And when you realise this, you will go on another shopping spree to make yourself feel good. In extreme cases, you risk going bankrupt, especially when you consistently spend more money than you earn.

How to improve it: Create a budget. It will help you see things from a different perspective. It will make you aware and help you prioritise your purchases. Automate your savings, investments, and debt repayment. Also, look for healthier outlets to process and deal with your emotional distress. Instead of shopping, you can journal or run- all free and essential for your mental and physical well-being.

5. The Compulsive Saver.

Unlike the compulsive spender, the compulsive saver is extremely frugal with their money. They believe saving money is the only way to feel more secure. So, they always stash money away, at times with no end goal in mind.

The upside: When you are a compulsive saver, you have the discipline to save money. A skill that many people struggle with. Also, since you are frugal, you know the cheapest places to buy items. You know where to look for bargains, sales, and offers, so you spend the least money for the most value.

The downside: You are so afraid of losing your money that you hardly spend it. You perceive money as a scarce commodity, and the more you spend, the more it seems to end. Therefore, you will not buy yourself a new pair of shoes even when the one you have is dusty, old, and barely hanging on!! You also skip out on hobbies and activities that involve spending money.

How to improve it: Find a balance between enjoying life and saving money. Explore the root cause of your worry and limiting money mindset. Then educate and empower yourself so you stop worrying and focus on investing.

6. The Saver-Splurger.

The saver-splurger is a hybrid of a saver and a spender. They start with saving a lot of money, but then give in to random spending impulses. Financial experts claim that this personality tries to control their life through their relationship with money.

The upside: You have the discipline to save money. You are very intentional about setting aside money and can quickly build a savings scheme.

The downside: You are not intentional about your spending. So, you have a cycle of saving for a long time and then spending all your money in a few days. Switching from saving to splurging can be emotionally exhausting, so you become stressed. You have money today, but tomorrow you no longer have it. Resulting in disappointment and regret.

How to improve it: Respect your money. So, try goal-based saving rather than a blanket approach. Identify your splurge reasons or items, such as travel, new furniture, clothes, or shoes, and create independent saving goals for each. Additionally, set aside money for investment so splurging feels guilt-free.

7. The Gambler.

Whether it’s betting online or visiting a casino, gamblers are addicted to the thrill of risk. They are a hybrid of compulsive money-makers and spenders. They get lost in the thrill of peril and the promise of reward. Most of them gamble to escape boredom.

The upside: You have an abundant mentality when you are a gambler. You believe you can easily make more money tomorrow if you don’t have it today. You are a risk taker; the higher the reward, the more drawn to it.

The downside: The thrill of risk is addictive. The more you win, the more you want to take more risks. And when you lose, you suffer devastating losses, affecting your mental health. The biggest trouble with gambling is that it can become problematic. You can borrow against your house, your children’s school fees, or your retirement money in the hopes of doubling it.

How to improve it: Seek help if you are struggling with gambling addiction. Then be introspective and strict with financial risks. Prioritise security and balance over the thrill of risk and reward.

The Take Away.

Understanding your money personality is vital in achieving financial breakthroughs and freedom. You can fall between two or three personalities, but the good news is that you can work towards improving them. Understanding your money personality goes beyond financial management. It gives you a sense of control over your financial life. When you are self-aware, you are empowered to make better and more informed financial decisions. As a result, you cultivate a healthier relationship with money.♥

What is your money personality? Let me know in the comments.