As the new year begins and we start thinking about what we want to do different this year, often how we manage our finances are at the top of the list. As you navigate setting financial goals, consider how your money personality impacts your choices and goals. And yes, money personalities do exist. They can help you identify strengths and areas of improvement relating to your goals.
While there are numerous names for the 5 money personality types, I found BigThink gives a nice overview.
They found the 5 types of money personality types are Big Spenders, Savers, Shoppers, Debtors and Investors.
Big Spenders like to “Go Big” with their purchases. The bigger and newer the better. They also don’t shy away from taking financial risks if it may benefit them in the future.
Savers like to hold onto their money. They are frugal with their spending habits and are cautious with how they manage their money especially when considering large purchases
This group likes to spend based on how they feel and how it relates to the purchase. At times, shoppers have a hard time knowing when to change their behavior especially when an item isn’t needed.
Debtors are often unaware of their finances as a whole. They often carry debt but it doesn’t bother them.
The people in this group are forward thinking in how they spend their money. They look for opportunities to help set financial goals for the future, while maintaining their current finances.
Of course, you may see yourself in more than one of these personalities and that’s ok too. Once you have an idea of your money personality and how it relates to your spending you can consider ways to help you save too.
Tips For All
- For Big Spender
💡 Tip: If you like spending on high price items, consider which items give you the most enjoyment and find ways to streamline those expenses.
- For Savers
💡 Tip: Consider what are your goals and reasons for saving.
- For Shoppers
💡 Tip: Consider what’s bringing you enjoyment from your purchases? If you find an item isn’t worthwhile, skip the purchase and save the money instead.
- For the Debtors,
💡 Tip: Consider setting up financial goals to help you focus on your finances. This in turn can help you determine where to save money to help you reach them.
- For the Investors,
💡 Tip: Consider your long- and short-term goals to help you manage your financial goals.
By understanding your money personality, it can help your focus on what is important and ways to get there. For free financial analysis to help you learn where you are financially, check out our secure Financial Health Expert tool, IRIS. Our Financial Specialists can provide unique solutions to your money personality, including a free action plan that’ll help you take control of your finances.