Money and You: Discovering the Impact of Your Money Personality

Your Money Style is as Unique as You are

I see so many people with “comparisonitis” when it comes to their money.

They compare how much they earn, how much they have, and what they do with it. 

They evaluate how they are doing in the game of life based on their money, and base their self-worth on how they think their success with money stacks up against other people. 

Here’s the problem: Just like no two people are exactly the same, no two money personalities are the same either. 

And they don’t need to be. Everyone is unique. You have your own set of money beliefs, values, and priorities. Your dreams are different from your friends, family and peers.

Are You a Spender or a Saver?

Once we understand that our financial life is as unique as we are, it’s helpful to think about how our money personality affects our behavior.

An easy way to think about this is to compare two main money personalities: Spenders and Savers.

Then we can dig deeper to look at all the nuances within each of these.

Think of it as comparing the two primary colors of blue and yellow. These are 2 pure colors, but there are so many shades that combine some of each. And, of course, when you balance them perfectly you get green!

Characteristics of Spenders:

• They tend to believe there’s always more money coming. Therefore, they don’t feel the need to save for tomorrow, next month, or 5 years from now;

• They embrace the “YOLO” (You Only Live Once) philosophy that became super popular during the Covid pandemic. (During the height of Covid, many felt like since this virus might shorten their life, why bother keeping savings for the long-term future.) Even in more normal circumstances, the Spenders still maintain some of that thought process;

• Taken to an extreme, Spenders may wake up one day and realize they’ve spent so much money on “things” that they can’t pay their normal bills and are in a mountain of debt that’s growing daily; 

• They may file bankruptcy, face foreclosure of their home, or have their car repossessed;

• Being a spender, though, doesn’t mean that you are selfish and spend all of your money on toys. A spender might also be so generous that they give away all of their money to their own detriment.

Characteristics of Savers:

• They are always thinking about the money they need for the future. The future can be next week, next year, or 25 years from now, but it still occupies most of their money thoughts;

• They believe their ability to bring in more money (through work, investing, or other sources) could be cut off at any moment;

• They feel like they always need to be prepared for the rainy day, because it might be today;

• Taken to an extreme, Savers deprive themselves of the ability to enjoy their money and their life. They are waiting for “someday” to give themselves permission to buy things that are important and meaningful to them. This is particularly sad when a Saver finally gets to retirement and then has their life cut short by an illness or accident (I’ve seen this personally more than once); 

• When Savers force themselves to spend money on things that they don’t consider “necessities”, they usually don’t enjoy it because they feel guilty and think they are being careless or wasteful;

• Their priority on saving often makes even the kindest Savers seem selfish or uncharitable. They will usually demonstrate generosity by giving of their time, but not their money.

How Does Knowing Your Money Personality Help You?

Can you relate to one or both of these types? Many people resonate with a point or two from each. 

So what does all of this mean?

Once you understand your natural tendencies, which were likely formed as you were growing up and observing how your parents handled money, you can be more intentional and choose how you want your money life to look.

I truly believe that “Knowledge is Power”! 

You get to decide if your current money personality is serving you well. If the answer is NO, then you can choose to make changes (big or small), to bring the best of both of these money personalities into your own unique shade of money behavior. 

YES, change is possible.

At any age.

At any income level.

Most people desire to manage their money well. But sometimes we think it’s not worth the effort or sacrifice they think will be required to make it happen. 

I believe it’s worth it.

Life is short, try to enjoy it….and your money.