The 7 Money Personality Types

Everybody acts different with a little money in their pocket. How we behave and the decisions we make ultimately determine our financial health. Ken Honda has completed over 10-years of research understanding the psychology of money and happiness and has found that most people fall within seven distinct money personality types:


1. The Compulsive Saver

Signs you might be a Compulsive Saver:

  • You put away money endlessly, sometimes with no goal in mind. You are frugal.
  • You believe saving money is the only way to feel more secure in life.

Pitfalls: Some Compulsive Savers are so afraid of losing money that they go their entire lives without spending any of what they worked so hard to save.

Money Advice: It’s all about moderation; learn to find a balance between saving money and enjoying life. Think about where you see yourself in the future and how you can use your savings to get there.


2. The Compulsive Spender

Signs you might be a Compulsive Spender:

  • You tend to spend money on things you don’t necessarily need.
  • You have an outgoing personality and love treating people to something special, sometimes for no particular reason.
  • When you’re in emotional distress, your solution is to spend, especially for immediate gratification.

Pitfalls: Even if they have large amounts of debt, Compulsive Spenders will often continue going on shopping sprees. They may even try to hide large purchases from friends and family. In extreme cases, they can be at risk of going bankrupt if they consistently spend more than they earn.

Money Advice: Creating a budget plan will help you see things from a different perspective.


3. The Compulsive Moneymaker

Signs you might be a Compulsive Moneymaker:

  • You believe earning more money is the secret to happiness.
  • You spend most of your energy on trying to make as much money as possible.

Pitfalls: While Compulsive Moneymakers are usually on a strong path to achieving financial freedom, they can enter dangerous territory if they start neglecting important relationships to prioritize growing their wealth.

Money Advice: Recognize that there’s more to life than money.


4. The Indifferent-to-Money

Signs you might be an Indifferent-to-Money:

  • You rarely think about money.
  • You feel strongly that money shouldn’t influence important decisions in life.

Pitfalls: Many people who are indifferent to money feel they only need a modest amount of money to be happy, which is a healthy mindset. But things can get ugly if they’re not responsible with their finances.

Money Advice: Even if you are financially comfortable, make it a point to know things like where your money is going, what your monthly expenses are, and where you stand on debt. Doing all these things can save you a lot of financial stress in the future.


5. The Saver-Splurger

Signs you might be a Saver-Splurger:

  • You start out saving a lot of money, but then give into spending impulses out of nowhere.
  • When you do use your savings, you might spend on things you don’t need or will rarely use.

Pitfalls: Saver-Spenders often end up stressed and disappointed in themselves for working so hard to save money, only to lose it so quickly.

Money Advice: Before any big purchase, imagine how you might feel the following week or two. Don’t lose sight of your financial goals.


6. The Gambler

Signs you might be a Gambler:

  • The thrill of risk and promise of reward is a pleasure unto itself that you can quickly get lost in.

Pitfalls: It’s not unusual for Gamblers to encounter sudden windfalls or devastating losses

Money Advice: The goal is to be introspective and strict with the financial risks you take. Balance and security are essential to have, so start setting aside monthly savings before making any big financial decisions


7. The Worrier

Signs you might be a Worrier:

  • It doesn’t matter how much money you have – you’re constantly worried that you’ll lose it at any moment.
  • You lack confidence in your abilities to achieve financial freedom.
  • You constantly obsess over the worst case scenario of what will happen if you run out of money.

Pitfalls: It’s smart to be aware of what could happen if you don’t prepare for your future. But letting worry and anxiety eat away at your happiness in the present moment is never a good thing.

Money Advice: Seek positivity around money conversations. Work on understanding where your financial worries are coming from, whether that means talking to a financial advisor or a therapist.


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