We all have different relationships with money. Some of us are savers, while others are spenders. Some of us are good at budgeting, while others struggle to stick to a budget. Knowing your money personality can help you better understand your relationship with money and make better financial decisions.
There are four main money personalities: the spender, the saver, the avoider, and the worrier. Here’s a brief overview of each money personality:
Spenders go by many names—shopaholics, adventurers, thrill-seekers—but all are united by one thing: they love spending money!
The spender is impulsive and enjoys the act of spending money. They are also typically good at finding deals and negotiating prices. But, they often have a hard time sticking to a budget and may end up in debt if they’re not careful.
The Cons of Being a Spender
It’s easy to fall into the trap of buying things just because they look cool but don’t actually add any value to your life in the long run.
To avoid this pitfall, take time before making purchases—think about what will truly satisfy your needs and wants without going overboard on either one.
Also, remember that impulse buys aren’t always worth it; if there’s something high-ticket that catches your eye but you don’t actually need it right now, hold off until tomorrow and see if the urge still stands after 24 hours pass by (chances are, probably not).
The saver is the opposite of the spender—they’re people who prioritize long-term goals over short-term gains.
They focus on saving their money for big-picture items like rent and retirement rather than buying things they don’t need. As a result, they tend to prioritize budgeting overspending.
Savers are typically good at sticking to a budget and often have a nest egg of savings that they can tap into in case of an emergency.
However, savers can also be tightwads who miss out on opportunities because they’re too afraid to spend their money.
A money avoider is someone who is scared of managing their finances. They would rather just ignore their money problems and hope they go away.
Money worriers are people who stress out about money. They worry about having enough money to pay their bills, to save for retirement, and to live the life they want. They worry about being able to afford unexpected expenses, like a car repair or a medical bill. And they worry about what would happen if they lost their job or had to take a pay cut.
So, which money personality are you?
Knowing your money personality can help you make better financial decisions—after all, what works for one personality may not work for another.
If you’re a saver, you might need to take some risks in order to reach your financial goals.
And if you’re a worrier, you might need to focus on building up your savings so you have something to fall back on in case of an emergency.
Ready to Find Out? Take the Money Personality Quiz!
NOTE: These personalities are not the end-all nor the be-all of money personalities. You could find that you are a little bit of 2 personalities, or you are a certain personality in one circumstance and another personality in a different circumstance. This is just to give you a nudge to think about how you view and are motivated to use your money.
No matter what your money personality is, there’s no right or wrong way to manage your finances—the important thing is that you’re conscious of your choices and make decisions that work for you.