What’s your money personality type?


It’s no secret that everyone approaches managing their money differently.  In fact, there are a total of 7 money personality types that tend to cover the most common ways that we as humans manage our money.

Your unique money personality type impacts the way you view money, spend or save, and make financial decisions in general. Like all personality types, your money personality type is often learned from a young age, with traits resembling that of your role models, including your parents. However, they can definitely change over time and more than likely will differ depending on which stage of life you are in - If you’re a young adult you probably don’t mind spending money on food and drinks, whereas if you’re getting ready to settle down and start a family, there’s a good chance you’re living frugally and buying your groceries from Aldi.

If you have a certain goal in mind or are looking to improve your overall approach to money, then it is important to understand your personality type so you can learn the approaches that might work best for you. So, without further ado, here are the 7 money personality types: 

1. The Compulsive Saver 

AKA the hoarder

Everyone knows a compulsive saver - and if you don’t, you probably are the compulsive saver. Compulsive savers are constantly putting money aside without a specific reason or end goal in mind, but just generally feel more secure when they put money away. They are very frugal and find that saving money gives them peace of mind about the future. 

If you are a compulsive saver, be wary of being too obsessed with saving that you never get to enjoy the rewards of the money you have saved. It can be really easy to forget that your money serves a purpose, and that purpose is whatever you make it. If you are saving up for a house, then holding onto your savings is important. But, if you are saving up for a holiday, then book a holiday as soon as you can.

We know that compulsive spenders are often afraid of losing money. The best general advice we could offer is that you need to remember that everything in life is about moderation - and that includes saving. Instead of mindlessly putting money into your savings, think about your future, and how you can best use your savings to get there. Putting a goal in place will make it all worthwhile.

2. The compulsive spender

AKA the cash splasher

Cash splashers are known for spending money on things they don’t need. Buying a new ball gown, without a ball to go to? Adding a fifth pair of sneakers to your cart even though they wear the same pair every day? That’s a cash splasher. Often accompanied with an outgoing personality and a love for treating your loved ones, it can be almost too easy to spend more than you earn. If you are a compulsive spender, you may also find that when you’re upset, your solution is to impulse shop, as a means to achieve instant gratification. 

If this sounds like you, make sure you do your best to avoid going shopping, whether in person or online, so you are less likely to go on a spending spree ‘just because’.  It is not uncommon for compulsive spenders to spend money they don’t have, which, in extreme cases, can lead to bankruptcy.

So, if this sounds like you, here are some things to keep in mind: Most importantly, do everything you can to spend less than you earn. The best way to minimise your risk of going into debt is to create a budget and track your spending to ensure you are spending less than you earn. We also like to remind ourselves that every time you make a purchase, there is a sacrifice you have to make for it - If you want to buy a new Apple watch for $750, and you earn $30 an hour, is that shiny new watch worth 25 hours of your time? Maybe it is! But you never know until you put your purchases into perspective.

3. The compulsive money maker 

AKA the baller who wants to make it rain

There are plenty of people out there who see money as the meaning of life. And although we aren’t here to judge your money personality type, we want to ensure that everyone has a healthy relationship with money. Compulsive moneymakers tend to believe that earning more money is the secret to happiness, and therefore they spend most of their time and energy trying to make as much money as possible. 

Our warning: please be cautious not to fall into the trap of sacrificing your health, relationships and overall happiness just to make lots of money and be rich. Chasing an early retirement or financial independence is a really great reason for working hard to earn money, but there definitely needs to be some balance in your life that prioritises your physical and mental health too.

We also want to remind any compulsive money makers that there is more to life than money. So if you have more money than you need, why not give your money some purpose? Treat yourself to a nice holiday, support someone you know who may be doing it a bit tough, or even donate to a cause that is important to you. Money is only as good as what you do with it!

4. The indifferent to money

Not too fussed about how much you earn or spend? This might be your money personality type! Those who are indifferent to money rarely think about money and absolutely despise the idea of creating a budget. Some may believe that money is inherently bad or evil, and should definitely not have any influence over the important decisions in life. 

If you feel this way about money, be wary that there are definitely some consequences for not being responsible with your finances. It can be really easy to not take control of your finances, or let a partner take care of them for you, but there are some big risks to that, including falling into a big debt.

If you think this might be your personality type, don’t panic. The most important thing you can do is start trying. Make a point of knowing where your money is going; some to rent, some to food, some to ‘fun’ expenses, and do your best to spend less than you earn. It’s okay to spend money on the things you value, but it is important to try and limit that amount to be under your income, so you can build up some savings to fall back on if you need.

5. The saver-splurger

This money personality type shares common traits with both savers and spenders. They love saving lots of money, but then tend to impulse spend a lot of money at a time. When they dip into their savings, it’s possibly for unnecessary things that you don’t need or will rarely use.

If this sounds familiar to you, then we know that it can feel draining. Saving a lot of money and then splurging all at once can lead to feelings of dissatisfaction and even regret. In general, your money journey may feel like a roller coaster for you. 

If you’re looking to change your money personality and improve your approach to finances, we have some general advice for you! It may help you to put some thought into what you are saving for, whether it’s a house or a new pair of shoes. If you set out some clear goals, it’s a lot easier to rethink your financial decisions before you impulse buy 7 new pairs of jeans that you definitely don’t need. The ‘bucket’ method is a really popular way of defining your saving goals and making it super transparent what you are working towards. Similarly, you may like to create multiple savings accounts, each assigned to one of your goals, such as “holiday”, “new car” or “new surfboard” so you don’t feel as guilty when you use that money on exactly what you saved it for. 

6. The gambler

If you have the money personality type of a gambler, then you probably share some common traits with compulsive money makers and spenders. It can be really easy for gamblers to get lost in the thrill of risk and the promise of reward. They might gamble away their money for the purpose of escaping boredom, whether it’s lotto tickets, the pokies, the casino or even investing.

If you are a gambler, be wary of risking money that will have a substantial impact on your life. For example, it might be a risky idea to withdraw from your super to fund a chance bet. It’s also important to make sure that you don’t take more risks than you can afford. If you don’t have the money to gamble, don’t risk going into debt for it.

If you’re a gambler, be strict with yourself and the money risks you take. If it’s something you genuinely enjoy doing and don’t want to give up entirely, just set yourself a reasonable limit of how much you can afford to risk, and find balance in your financial risks - it may help you enjoy yourself even more.

7. The worrier

Ah, the dreaded worrier. No matter how much money they have, they are constantly worried that at any given moment they will lose it all. A lack of confidence in their ability to achieve financial freedom is accompanied by a constant obsession over the worst-case scenario of what will happen if they run out of money. This is an all too common money personality type, and we know how tricky it can be to go about your day to day life with constant money worries.

It is good to be aware of what could happen if you don’t plan for your future, so if you shift your perspective to an appreciation that you are prepared for the worst, it might help improve your attitude towards money. As much as it is definitely easier said than done, try not to let your fear of money overwhelm you and impact your current happiness. There is definitely more to life than money, and it’s important to keep that in mind whenever your fears start to overwhelm you.

Looking to improve your attitude towards money? Starting positive conversations around money is a great place to start. The WeMoney app has a great community feature where you can discuss your money plans, budgeting, savings hacks and more with people all across Australia. It may also help if you figure out where your money stress really comes from - Speaking to a professional, whether that be a financial advisor or a therapist, may help you change your mindset.




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Disclaimer: The author is not a financial advisor and the information provided is general in nature and was prepared for information purposes only. This article should not be considered to constitute financial advice. Accordingly, reliance should not be placed on this article as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs, or financial situation.

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