Your money personality simply means your attitude and behavior towards money. It is a reflection of your beliefs about money. Knowing and understanding your money personality will help you improve your financial life. It will help you spend, save, invest and grow your money wisely. So, what is your money personality?
There are five kinds of money personalities. Each one has different outlooks on how they handle money. It is possible to be a mixture of one or two personalities.
1.The Big Spender
As the name suggests, the big spender is someone who places value in their possessions. It is easy to spot one. Just take a look at the possessions that they own. Do they have the latest smartphone or gadget? Are they always wearing branded clothing? Do they have high-end vehicles? How big is their home? Do they own the latest and biggest television?These people are so comfortable spending money that they don’t care even if they end up in credit card debts.
If you are a big spender, make sure that what you are spending falls within your budget. If not, learn the art of delayed gratification. It is also important that you understand how credit cards work. Otherwise, a big spender is in great danger of falling into financial distress.
If you can’t buy it twice, you can’t afford it.– Jay Z
2. The Savers
The savers are exactly the opposite of the big spenders. Savers shop only when necessary and they hardly ever use their credit cards. They generally have no debts. They are the cheapskates. If you know someone who tries to avoid paying and does not want to share expenses, then they are the savers. Unlike the big spender who derives satisfaction from the possessions that they own, the savers get theirs from looking at their bank accounts.
If you are a saver, congratulate yourself. It means you are already careful and aware of your finances. Chances are, you already have your emergency fund and probably a bit of retirement fund as well. However, money psychologists advise that you should also learn to allow yourself to enjoy your hard-earned money. In the same way, you should also learn to share your money with others. The money jar budgeting system allocates at least 10% for play and another 10% for title.
3.The Security Seeker
The security seekers are careful planners. They research every option available before they start spending their money. However, unlike the savers, security seekers are willing to spend as long as they have the budget for it. They make sure that they have enough money to pay for the expenses before swiping their card or going on vacation. The downside is that sometimes, because of too much research; they end up not making the decision at all.
If you are a security seeker, it is best to lessen too much pessimism and anxiety over financial decisions. Be aware that life is all about choices. The key is to know your financial goals and make decisions towards the attainment of those goals. Yes, there will be better opportunities that may arise in time but be comforted in the fact that you already did due diligence. Your decision is the best decision at that point in time.
4. The Avoider
The avoider is someone who avoids thinking and talking about money. Avoiders are those people who have an untouched stack of bills lying in the counter. They don’t want to face their finances. They don’t take note of the due dates of their credit cards and bills.
If you are an avoider, it is best to start caring about your finances. Let’s face it, whether you like it or not; money is a big part of our lives. We need money in order to survive in this world. The first thing to do is to track your expenses. You will not be able to improve your financial life if you don’t know where your money is going. From there, you will be able to set up a plan going forward.
5. The Moneymaker
The moneymaker is someone who already perfected the skills of creating wealth. They spend most of their time and energy earning money. They believe that money is the key to happiness.
If you are a moneymaker, you have probably achieved financial freedom. You have enough money in the bank to live comfortably for life. However, do realize that although money is important; relationships are far more important than money. Because you were always busy creating wealth, you might have neglected important relationships. Now is the time to slow down and reestablish a deeper relationship with your family and loved ones.
The gambler is someone who loves taking risks. They get satisfaction from the thrill of risk with the promise of high rewards. They invest in anything that they think will give them high returns. Most of the time, they don’t even do their research anymore before investing. These are also the same people who are in danger of being addicted to gambling.
If you are a gambler before you start losing all your money; it is best to first understand the rules of investing. Be strict on where you invest your money before you make big financial decisions. And avoid borrowing money just to enter an investment that you do not even understand. Learn to guard your money.
The bottom line, understand your money personality and find a way to balance the personalities in order to help you achieve your money goals.