Everyone has a unique money personality. Money personalities can be a combined result of a person’s experience with money and their natural, God-given personality.
Knowing your money personality can help you better understand your tendencies and be aware of your temptations. For married couples, knowing one another's money personality can help you better communicate and empathize with your spouse.
What is your money personality?
We’ve identified four money personalities—Spender, Saver, Investor, Ignorer. Each money personality has its strengths and weakness.
Spenders find pleasure in swiping the debit or credit card. They pay first and worry about the consequences later. Motivations for spending may vary. Some spend because it simply gives them a rush. Purchasing something makes them feel good. Some spend because they like to give gifts. They enjoy watching the recipient of the gift light up when they tear apart the wrapping paper. Others spend to boost their ego. The purchase items to signal success and wealth to others.
Spenders are often referred to in a negative manner. But there are real strengths to be found in spenders. First, they are actually willing to pull the trigger when a purchase needs to be made. Second, they are the ones who are often thinking about and planning gifts purchases for birthdays, anniversaries, and Christmas. Because of this, they are often good at maintaining relationships.
Spending can get the best of them and their budget. Spenders can quickly erode what money is left in a bank account. They can also be prone to credit card debt. The overarching weakness of spenders is the lack of value they place on money. Money is something they quickly dispose of.
Savers get excited when they see the amount in their savings or retirement account go up. They are uncertain about the future, so they want to prepare well for whatever it may bring. Savers also tend to be passionate about paying down debt. Like saving money, reducing debt helps give savers a greater sense of financial security.
Savers often make good financial decisions—saving for emergencies and paying off debt. Savers are often viewed as having the safest of the money personalities. Spiritually, savers tend to follow the wisdom found in the Scripture about saving for future expenses.
Like any money personality, savers can go to an unhealthy extreme. Savers can become frugal beyond what is necessary. They can suck the life out of life. They opt for a tent instead of a hotel on the family vacation because it saves money. Savers are more prone to give a guilt trip when money is spent. They can also feel guilty when they spend money. Savers tend to be more conservative when it comes to investing, hesitating to put any money at risk. Spiritually, savers can find themselves placing their hope in a full bank account instead of God.
Knowing your money personality can help you better understand your tendencies and be aware of your temptations.
Investors are willing to take risks with money. For example, they have no problem putting money in the stock market. They are willing to ride out the downturns in the market for long-term gains. They can also be entrepreneurial, attempting to start their own business. They believe that to make money, you have to spend money. They are always searching for a good return on their money.
Investors invest. They are willing to invest to have enough for retirement and other future needs. They understand how money can be leveraged to accomplish greater things. They are usually financially optimistic and confident.
Investors can get carried away by the allure of higher returns. Their confidence can turn into overconfidence. When this happens, they get financially reckless. The potential of a greater return can sometimes cause them to disregard sound financial practices.
When it comes to money, ignorers get uncomfortable. They don’t want to talk about money, listen to anything about money, or deal with anything that has to do with money. Ignorers constantly try to postpone money issues, hoping they will eventually go away.
Ignorers' minds are not consumed with thoughts about money. Money is usually not an idol for them. They are also willing to trust others, whether it is their spouse or a financial professional, to manage their money. When married, they rarely get into heated conversations about money. They are often willing to sacrifice their preference for the preference of their spouse.
Ignorers are unaware of their financial standing. Do they have too much debt? Are they saving enough? They often don’t know. Such is a dangerous position. Additionally, never expressing their preference can build up resentment and anger. Avoiding the smaller disagreements may eventually lead to one big nuclear argument.
How you do identify your money personality? You can always ask others. Those closest to you probably already know your money personality. You can also imagine a fictional scenario where you win $50,000. What would you do with that $50,000? The answer to your question may reveal your money personality.