Money Personality types

​We are passionate about seeing our clients succeed in every area and endeavour. Finances are an important part.
A “one size fits all” budget doesn’t work for everybody. We are all different in the way we view money, spend money and save/invest money. In a similar way that personality type varies from person to person. Investopedia identifies the following 5 Money Personality Types; 

Big spenders : They love new cars, new gadgets, they are fashionable and look for ways to make a statement. They dont look for ways to keep up with the “Jones”, they are the Jones! They dont mind debt and will take risks when investing.

Savers : The opposite of big spenders. They turn off the lights when they leave the room, shut the fridge door quickly (to save power) and look for the bargains when shopping. Generally, have low debt. Not interested in buying the latest toy.

Shoppers: May develop great emotional satisfaction from spending, they can’t resist it. Even items they don’t really need. They may be aware of their addiction. They look for bargains and are happy when they find them (even if they are not needed).

Debtors : Aren’t trying to make a statement with their spending and they don’t shop to cheer themselves up. They simply don’t spend much time thinking about their money and therefore don’t keep tabs on their spending and where they spend.

Investors: Are consciously aware of money. They try and put their money to work. They tend to seek the day when their passive investments will provide enough money to cover all their bills. Can become consumed by the goal.
 
Of course we can be a complex range of all the above. But it helps to identify the strongest area in our money personality.
What to do?
Make small changes, often. It can yield big returns.
Heres some tips based on your money type:
 
Spenders : Shop a little less, save a little more. If you love to spend you most likely will keep doing it. But seek long term value and not just short-term satisfaction. Ask yourself: How much will this purchase mean in 12 months?

Savers : Use moderation. Don’t let all the fun parts of life pass you by. Tune up your saving efforts - get some professional advice about the best way and where to invest.

Shoppers : Don’t spend money you don’t have. Control credit cards. If spending is making up for some area of lack/pain in your life, consider getting some help in the area of concern.

Debtors : Plan your finances and start investing. You may need help to get your finances in order. Accountability is not a dirty word! It can be a powerful tool to financial freedom.

Investors: Keep up the good work, but don’t let it control your life.
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​Bottom Line: You may not be able to change your money personality type, but you can address it and make small changes that will make a big difference. Self-awareness is a good starting point.
 
I trust the above is useful. Don’t hesitate to be in touch if we can be of help with your money management. Its an important part of what we do.