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Discover Which Of These Four Money Personalities You Are

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Which Of These 4 Money Personalities You Are

How you budget and spend your money greatly depends on your personality. Some may spend money as a means to relax and enjoy themselves. Others might save money to avoid stress or nervousness. Knowing your type of money personality helps you plan your financial goals and limits. Here are the fun facts and details each of the four different money personalities.

What is a money personality?

Have you heard of the Myers-Briggs Type Indicator? In the MBTI, you respond to various scenarios and situations. In the end, you discover your type based on those decisions. These answers are categorized based on social interaction, emotional response, and other behavioral factors. Eventually, you get a label on your personality type from sixteen potential options.

Similarly, a money personality is a category that focuses on how and why you use your cash. The difference between this test and the MBTI is that it focuses more on your financial decisions. Much like the MBTI, these types should not isolate your choices into one specific category. There’s no precise answer to any transaction or investment. Instead, consider these money personalities as an insight into your train of thought. It’ll help you understand how you handle your finances and ways to improve your money-making decisions.

The best part about money personalities is that you won’t need a complex exam to discover it. To start, look at your daily expenses and list them down. Do you notice how often you spend your money? Depending on the size and frequency of your transactions, you might be a saver or a spender.

After that, list your priorities and goals in life. Doing this lets you understand how you plan on spending your budget. For example, one person may focus on getting a big house and starting a business immediately; another may focus more on covering bills and student loans. Once you discover how you spend and what you are spending for, your money personality is revealed. 

Four types of money personality

Now that you answered the daily expense and priority questions, there are four money personalities you could be. Here are the descriptions for each type, the problems they may face, and what you can do to overcome them. Remember that these suggestions shouldn’t stop you from doing what you feel is the best move. Think of them instead as advice for potential problems and obstacles you might face later in life.

1. The Emotional Spender

The first money personality type is the emotional spender. These people tend to buy based on how they feel and what their mood is. For them, “shopping therapy” is a valuable way to spend their cash and alleviate stress in their lives. For instance, a bad day at the office might lead to them buying a delicious meal and a pair of shoes to uplift their spirits.

Which Of These 4 Money Personalities You Are Happy

Problems they might encounter:

Typically, emotional spenders run the risk of building up credit card debt. The reason why is that they use their credit cards based on their mood. Doing so can derail their budget plans, especially if they need to quell those unpleasant feelings. Alternatively, they could be in such a good mood that they want to make the most of their cash. Perhaps a family member got engaged, or they earned a promising promotion. Either way, their emotions can cause setbacks to their original budget plans.

The advice they need to hear:

Being an emotional spender means you might make more purchases this week than you intended. Setting aside some cash is the best way to avoid building unnecessary debt. 

Creating a mood fund is separate from your savings account and emergency money.

In this budget, you divert a portion of your earnings as a backup for when your spending impulses strike. Having a mood fund can remove any debt or damage to your savings. You also get to buy what you need without feeling bad or guilty.

2. The Status Spender

Also known as “The Hype Beast” by younger people, a status spender focuses on buying the latest trends. They place a high value on their possessions and want to follow what is currently popular. For example, they won’t hesitate to buy the latest Air Jordans or iPhones. The reasons why a status spender wants these things can vary. Sometimes, it’s to fit in with their friends and colleagues. They might also want to get the most helpful and comfortable item immediately.

Which Of These 4 Money Personalities You Are Calm

Problems they might encounter:

Depending on how often they spend their cash, a status spender risks going off the rails with their budget. Unlike the previous one, they don’t necessarily need to satisfy their mood. It could be a simple look at the latest gadget or clothing brand that kickstarts their expenses. However, one advantage that status spenders have is that they aren’t afraid to make a transaction. 

For example, they are willing to invest in higher-risk options for lucrative gains and profits. While their investment isn’t guaranteed, their mindset allows for more exploration of potential deals from which others would’ve run away. Again, the issue here is that they still risk losing more money than they could gain. Without proper planning, status spenders could quickly lose their savings and funds.

The advice they need to hear:

Like other money personalities, how you choose to spend your money is not an issue. There’s no harm if you want to maintain your status, as long as you know how to avoid hurting yourself. To be safe, always remember to allocate a portion of your earnings to buy the next potential gadget or device.

Also, remember to set aside funds for your investments or trade options. With the right budget, you’ll soften any possible losses or heavy transactions. Remember that it’s okay to be flexible with your purchases. You’ll avoid debt and protect your savings by giving yourself room to spend and allocating enough funds.

3. The Dodger

Contrary to the previous money personalities, dodgers actively avoid looking at their expenses. For them, staying away from the numbers is the best way to stop financial stress. Dodgers often try to keep their attention away from incoming bills, debts, and loan payments. This way, what they can’t see or remember won’t affect their mood or mental state.

Which Of These 4 Money Personalities You Are Sad

Problems they might encounter:

Avoiding any problem isn’t going to solve anything. It’s as if you’re watching a fire and doing all you can to stay away. You might not feel the heat, but that doesn’t mean the fire is gone. Similarly, dodgers may not realize that ignoring and refusing to acknowledge their debts is dangerous. They risk having it build up to insane amounts, which could cause even more anxiety in the long run. The same is true for other potential expenses, like insurance plans and mortgage fees.

The advice they need to hear:

Sometimes, you must bite the bullet and pay when it’s time. It might hurt to lose your cash, but it’s safer to clear your debts now than to wait. Going back to the fire example, you need to get rid of your problems before they become too heavy to bear. One way to lessen the pain is by automating your expenses. See if you can negotiate with your bank or banking app to cover incoming bills with automatic payments. This way, you won’t have to worry about paying the money when the time comes. 

4. The Mega Saver

While dodgers avoid looking at incoming expenses, mega savers take it to the next level. These people actively prevent any financial losses. For them, saving money is key to achieving their goals and living a happy life. These people are frugal with their cash and will not hesitate to walk away if they don’t like the cost. For example, a mega saver will do all he or she can to stay within the weekly grocery budget. This mindset means they’ll gladly cut off or keep away from any valuable items if it takes them a few dollars above the limit.

Which Of These 4 Money Personalities You Are - Money

Problems they might encounter:

You might think a mega saver is the most effective of the money personalities. After all, they actively avoid losing cash and spending beyond their limits. Surprisingly, the truth is that they aren’t as glamorous as they may seem. Being frugal with your money may provide concrete foundations for your future goals, but it also puts a tight lease around your lifestyle. You might be so focused on saving money that you don’t get to enjoy life. 

For example, you may avoid going with your family abroad or to a new theme park because you don’t want to lose money. While you protect your savings, you also miss out on new experiences, the kind that your cash can’t buy back

The advice they need to hear:

Money isn’t the only concern in your life. While it is noble to save what you can, you shouldn’t hold back and restrain yourself completely. Take time to spend a little for yourself. You could buy an excellent book you’ve always wanted to read. You could also try small risks in your investment portfolio. Those who take time to explore on occasion might gain exceptional gains from their stock or bond options. There is a chance that you could fail or dislike your purchase.

However, it’s better than never knowing what you should do and avoid. You can’t be like a turtle and hide in your shell forever. At some point, you need to take a chance and step out to experience the world.

In summary

There are four money personalities that you could be. Each one has a different mindset or attitude regarding spending and saving. For example, emotional spenders use their money when they want to satisfy their moods or impulses. Meanwhile, mega savers actively avoid making unnecessary purchases to protect their cash.

Whatever money personality you are, remember that you need to plan accordingly for your expenses. You’ll handle all unexpected expenses or large purchases in time by keeping your budget and backup funds ready. In addition, you should also take time to spend a little and take risks with your cash. Maintaining a proper balance between your funds and your transactions will help you live a happy and financially secure lifestyle.

Thank you very much for reading this article! If you found this article helpful, please don’t hesitate to share this article with your family and friends. If you want to learn more about becoming a millennial millionaire, get a copy of my FREE book here! I will share real-world steps and techniques you can use to grow your finances.

Article Sources
  1. Ali, M. (2022, July 13). What Is Your Money Personality Type? YouTube. 
  2. Bell, J. (2020, March 18). There are 5 different financial personalities. Which one are you? Big Think. 
  3. Cherry, K. (2022, July 28). Myers-Briggs Type Indicator: The 16 Personality Types. Verywell Mind. 
  4. Smith, L. (2021, July 21). What Is Your Money Personality Type? Investopedia. 

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