Money Personality Types

We often stress about the importance of financial literacy, such as gaining a strong understanding of how money works and having the resources to make informed decisions.

But when it comes to establishing financial health, one thing most people don’t consider, although they may be vaguely aware of it, is their money personality type - or their approach and emotional reactions and responses to money. You’re probably somewhat aware of your personality type: whether you’re an introvert or an extrovert, a control freak or totally laid back. But did you know you have a money personality type too?

We each have our own beliefs and emotions about money, which are mostly shaped by our personal life experiences (e.g., passed down from our parents or influenced by situations or simply repeated poor financial decisions).

What Is a Money personality? 

A money personality is broadly made up of several tendencies or traits that identify how you work with money.

1. Spender or Saver
2. Nerdy or Free Spirit
3. Things or experience
4. Quality or Quantity
5. Security or Status
6. Sufficient or Scarcity
7. Gambler or Worrier

You most likely lean toward one or the other of each tendency, but you may also be somewhere in between or a combination. None of the tendencies are right or wrong, however they do have implications. Understanding them will help you make faster financial progress goals.

FREE SPIRIT

Live life to the fullest

Don’t like budgeting

Aren’t worried about details

Nerdy 

They have their tax return prepared for the dreaded deadline well in advance. Spreadsheets, charts and  budgeting make them feel in control of their money which they love. They’re laser-focused on what they need to do to win with money, and they’re on top of the details and decisions on a continual basis.

Challenge: It can be very stressful if you live and die by the rules and the budget, not to mention driving your self and potentially family crazy.

Free Spirit 

Tax Day is when? If this sounds more like you, you’re probably a free spirit. When it comes to money, they have a “let’s enjoy life” mentality. Easy come and easy go attitude to life and their money habits follow suite. Just reading the word spreadsheet  would make then break out in a cold sweat. .

Challenge: If free spirits aren’t intentional about their money, they’ll look up in a few years and wonder where on earth it all went.

EXPERIENCE

Love going out to eat

Enjoy making memories

Experience 

If you’d rather spend your money on experiences, like travel, concerts or a day at the spa, you’re a person who values experiences. I am in-between both things and experiences but my wife is most definitely an experience person and would far rather have a day out on an adventure.

Challenge:  Understanding which you value most, will most definitely help you better manage your money.

Quality

These people rather  wants things that are going to last longer and will pay a bit more for something of good quality. Generally  people who value quality will research and plan their purchases beforehand knowing exactly what they want and don't tend to be impulse buyers.

Challenge: Ask yourself if it’s really necessary to spend more, or if there’s a less expensive option you would enjoy just as much.

Quantity  

They enjoy the creativity and possibility that variety offers. You like having ten options versus going back to the same thing over and over. People who lean toward quantity are often great bargain shoppers. They pride themselves on the art of a great deal.

Challenge: If you struggle with overdoing it on quantity, consider taking the Minimalists’ challenge to give you a different perspective. New Paragraph

STATUS

Like name Brands

Enjoy the finer things in life

Security 

People who value safety as part of their money personality want the security that money can bring. They want to know they can withstand job loss, a medical emergency or even just a dip in income.

Challenge: Don’t let a safety mindset keep you living in fear. As you make money decisions, make sure you’re seeing and considering all of the possibilities, not just defaulting to the choice with the least amount of risk.

Status 

Someone with this kind of money personality is more likely to value a name-brand purse or luxury vacation. They’re also more likely to find a way to justify a larger purchase if, on some level, it makes them feel seen as successful.

Challenge: Knowing that you have that status tendency means you’ve got to keep your spending and your heart in check. The stuff you own doesn’t define you as a person.

Sufficient

People who live in an abundance mindset believe there’s always more than enough for everyone. They tend to take more risks and don’t fear the outcome of a decision. They also tend to be natural givers, believing there will always be a way to make more money!

Challenge: glass-half-full mentality can interfere with making wise choices with money. If this is you, seek the advice of family and friends you trust before making a big purchase (even if it’s for someone else).

Scarcity

Glass-half-empty mentality who operate under the assumption of scarcity make money decisions based on a belief that resources are finite. They hold onto possessions tightly because they “might need that someday.” And sometimes they fear losing things because they might not be able to replace them.

Challenge:  Don’t miss smart financial opportunities that will move you forward in life because fear is undermining your thinking.

Gambler 

A gambler by nature is always looking for a windfall of money by taking financial shortcuts. Even though the familiar adage “a fool and his money are soon parted” often comes true, they often win because they are willing to throw the dice and willing to take chances. The Gambler is often judgment impaired and has difficulty seeing the truth about things  getting caught up in the enthusiasm of the moment.

Challenge:

The goal is to calculate and be strict with the financial risks you take. Balance and security are essential to have, so start setting aside monthly savings before making any big financial decisions or gambling away on impulse.

Worrier

Never satisfied things are in a good place financially. The worrier is constantly stressed about finance and their not being enough or that something may go wrong. Even though they may be on top of their financial management, there is always concern something may go wrong. No matter how much is put aside, for emergencies, this is never enough.

Challenge:  Worrying wont add a single minute to ones life. Worry comes from the unknown but  knowing there is a back stop of money or that you are in good control financially can allow you to remove some of the worry burden.  If worry comes from knowing all is not well, the choice is simply get help and fix it no matter what.