While some experts do not agree on the exact names of the following money personality types, most agree that there are five and that it is important to understand which one you are. Knowing your money personality type can help as you plan accordingly for the future of your finances. According to “The 5 Money Personalities: Speaking the Same Love and Money Language” by Bethany and Scott Palmer below are the five money personalities.
“The first type is the Saver. These fervent bargain-hunters clip coupons, compare prices, and hate to pay full price for anything because they love to get a good deal. As easy as it is to get Spenders to part with their money, it is equally hard to get Savers to part with theirs. At their worst, Savers can be viewed as cheapskates who do not tip servers well or skip out on their portion of a shared bill. They can sometimes undervalue their time as well. At best; however, Savers can be resourceful and creative, and they are role models of lifestyles that are not focused on material possessions.
The next money type is the Spender. Spenders believe money is meant for spending and have no trouble parting with their dollars. Sometimes they spend more money than they should or live above their means because they get caught up in the moment or see something they “have” to have. They usually spend first and think later; however, on the plus side, spenders tend to be generous with their friends and support charitable causes with ease.
The third personality type is the Risk Averse. Risk Averse people place security and planning as their number one concerns. They prefer proven, safe investments and like to plan and research before making any big purchases. They view money as a tool that generates security. Their hesitation to part with money or seek out investment opportunities comes from their high priority on feeling financially stable. At best, Risk-Averse personalities can help a family maintain solid financial footing, but at worst, they may forgo opportunities for growth due to risk concerns.
The fourth personality is the Risk Taker. They think money is all about the thrill of the chase and will take big risks if it means a potentially big payoff. They are driven more by optimism and gut feeling than by details and analysis. At best, Risk Takers may dramatically increase their wealth with a winning investment and at worst, they may lose it all.
The final money personality type is the Flyer. This is the personality that “doesn’t pay attention to money.” They simply do not think about money at all. They do not view money as a tool that creates security, status symbols, or anything else. They would be equally happy with a tiny or massive bank balance, and they believe that people who think too hard about money (like Savers and the Risk-Averse) are a bit obsessive.”
Take a moment to reflect on what type of money personality you have. How does that effect you as go throughout your day? You may be surprised what you can learn about yourself when you reflect on which money personality you are.