The way you think, feel and manage your money often depends on your money personality. Our money behaviour is deeply rooted in us and is often formed from childhood experiences. Understanding your relationship with money and acknowledging your unhealthy habits is the first step to gaining control of your finances.
So which one are you?
1. The Earner
You’re always on a quest to earn more either by starting a side hustle, gunning for opportunities to advance or searching for the next best investment. Making money comes naturally to you because work is the love of your life. If it’s not about increasing your cash flow, then to you it’s a total waste of time.
Your Priority: More money, more status.
Money Mantra: Work hard, play hard without the ‘play hard’ part.
Advice: Keep investing but learn to enjoy life a little. Find the balance.
2. The Spendthrift
You have a talent for spending. You’re guilty of spending most or all of your money before you earn and most times you spend to impress. You’re always down to splurge and believe as long as you want it, you should have it. In unchecked cases, you and debt are jolly friends.
Your Priority: The latest trends.
Money Mantra: YOLO – You Only Live Once
Advice: Get your spending uder control and treat debt like the plague. Shop a little less, save and invest more.
3. The Hoarder
You most likely have an airtight budget and you always review every transaction. You’re always saving for a rainy day and money you can’t account for can give you sleepless nights. It’s hard for you to enjoy the money you’ve earned because spending on anything but your needs just feels wrong.
Your Priority: Interest on your bank statement
Money Mantra: A penny saved is a penny earned.
Advice: Take a little risk, try investing. Explore options that allow you enjoy your earnings and can grow your nest egg.
4. The Avoider
You have a hard time planning your finances. Saving, investing and even paying bills seems like a chore to you. You and money have never been friends so you avoid looking at your bank balance. You know money is a necessary part of life, but you can’t be bothered with it.
Your Priority: Other things in life.
Money Mantra: Out of sight, out of mind.
Advice: Change your mindset. Learn about money and start investing towards a rewarding future.
One thing most people fail to consider when it comes to establishing financial health is their money personality type. Identifying which types you fall under, and understanding the pitfalls of each, can significantly improve your relationship with money.
Money doesn’t change men, it merely unmasks them. If a man is naturally selfish or arrogant or greedy, the money brings that out, that’s all.
— Henry Ford