What's your money personality?
Keeping your personal finances in order may seem like it’s about having good maths skills or understanding how interest rates and investments work. However potentially more important is understanding how your emotions and subconscious beliefs influence the way you think, feel and behave in different money situations.
Experts say, knowing what drives your financial decisions, can help you reach your money goals, whether that’s spending less on impulse purchases or saving more for retirement.
If you put two people in the same situation with money they will likely handle it very differently based on their personal experiences and values. Your beliefs are often shaped by the messages you heard about money during your childhood. In some cases these have been passed down for generations!
I love the saying “first we manage the emotions, then we manage the money”.
It’s important to know there is no right or wrong way to behave with money. Most people are a blend of personalities and it’s important to understand your personality can change over time.
Personally early in my career I was a Super Saver, before becoming an Emotional Spender. Today I am a blend personalities.
Here are the four main money personalities:
Super Savers are cautious with their money and plan with the intention. You often think about the future and worry about being comfortable.
As a Super Saver, you are most likely to:
Know exactly how much you spend, earn and save.
Save 15% or more of your income each year
Almost always be financially self sufficient or in a state of abundance.
Have a strong sense of order and bring organisation to your finances with more ease than others.
You may be less likely to take risks, choosing to maintain cash in your savings accounts rather than investing.
You may feel guilty or shameful spending money spontaneously, leaving you missing out on opportunities.
You are less likely to be generous with your family, friends or charity than other money personalities.
Liberating Wisdom for Savers:
Relaxing is much more important in my life than I realise.
As an emotional spender you enjoy living in the here and now, living life to the fullest. You enjoy social experiences with your friends and spending money to buy things that give you immediate pleasure.
You are most likely to:
Use retail therapy to make yourself feel better when having a bad day.
Make most your purchases on your credit card and tell yourself you’ll worry about it later.
You find it hard saying no to friends when they invite you out for dinner and move money around to make it work.
You get satisfaction from spending money on gifts for others.
You find it difficult saving money and prioritising the things you’d like in your life.
You may spend most of the money you earn each month and may have personal debt.
It’s important to note some people who are in debt may not be earning enough income to meet their basic needs and need to come up with strategies to generate more income.
Liberating wisdom for Spenders:
Living within my means and taking care of my future is a form of self care and creates a different kind of pleasure
When you walk into a room you like to be noticed. Credit cards are your best friend. You hate to limit yourself, after all you work hard for your money and it makes you feel good spending it. You’re always looking for the next career change, the next pay-rise, the next opportunity to impress your friends.
As a Power Spender, you are most likely to:
Exhibit great qualities of leadership and style. In your career you’re known for making decisions and getting the job done.
You’re willing to take risks that often pay off, and when they don’t you put it all down to a learning experience and move onto the next thing.
You have trouble saying ‘no’ and are much more comfortable acting spontaneously than making longer term planning decisions.
You often avoid budgeting or looking at where your money has actually been spent.
You’re aware that your personal finances aren’t where they should be and you don’t have much future security.
You may feel like an imposter because your bank account doesn’t match the image you portray.
You are ready to begin building financial security for the future but may feel guilty and embarrassed about decisions you have made in the past.
Liberating wisdom for Power Spenders
Resisting the temptation to buy something to impress others is very self loving.
Most avoiders run at the first site of the words ‘financial’ or ‘money’. If you are an avoider well done on getting this far!!
Avoiders prefer to burrow their head in the sand, not thinking about money. Your biggest wish is that someone else would take care of it all for you.
As an avoider, you are most likely to:
Have feelings of anxiety or disgust when thinking about money.
You avoid putting significant attention on money and believe or hope that life will work out for the best.
You pay your bills last minute or are late paying and accrue additional fees.
You’ve probably had personal debt (not counting a mortgage or car loan) for more than a year and have less than three months of living expenses in savings.
You may have received a lump sum payment from an inheritance, lottery winnings, a divorce, a job, or another one-time event in the past ten years and now you have little or nothing to show for it.
You constantly tell yourself:
“I’m never going to have as much money as I need to live the life I want”
“If I don’t look at my financial situation, I won’t feel the pain and somehow my situation will get better”
Our money personalities can evolve over time. Just because you are an Avoider or Power Spender now doesn’t mean you will always be this way. Financial coaching can empower you to transform your relationship with money and help you create a prosperous future.
