Assessing your money personality
Dear
Money Lady Readers,
I often get asked about how to help people deal with money issues and many Canadians want to know how to change their partners, especially if you’re a saver and your partner is a spender. Often our financial decisions are deeply rooted in what we’ve learned as a child, including our past socioeconomic status, culture, experiences, and our parent’s attitudes towards money. Let’s face it, life’s expensive – especially nowadays. It’s easy to go into debt without really indulging. We’re all trying to cut back and spend less, but understanding your relationship with money helps you find ways to improve your situation. There are seven money personalities that researchers have divided us all into – and of course, some of you may have a combination of few. Which trait do you most relate to? Once you have decided, try to see the differences between you and your partner and then you can work on a plan to help each other.
First up is the Worrier. This is a person who constantly worries about losing money. It doesn’t matter how much money they have – they are always worried about losing it. Typically, they lack the confidence to believe they can ever be financially stable, and I like to call this trait the MoneyPrepper – always preparing for the worst, always anxious, and always expecting a disaster to happen sometime in the near future.
On the other end of the spectrum – is the Gambler. This type of person takes big risks with money, but the problem is they also have extreme mood swings. Sure, they love the thrill of risky money moves but then tend to crash hard when luck isn’t on their side. Be careful with this trait. Gamblers will often go into debt or use savings to take more risks to make up for past losses.
Then there’s the compulsive saver. This is someone that saves money endlessly and views their money as their security. This is a BIG bargain shopper and will take being cheap to the next level. They’d wrestle a discount out of every sale if they could, and there happiest when they’ve snag something for nothing.
Opposite them – is of course, the compulsive spender. And we all know what this person does. This is usually someone that spends when emotionally depressed or in need of immediate gratification. Even if they have a lot of debt, these spenders will continue to go shopping. In extreme cases, this person tends to hide large purchases from family and friends, and even though they feel remorse, they can’t stop, and often are at a risk of going bankrupt.
The compulsive money maker is the next one. This is someone that believes life is better when you earn more. This could also be a workaholic. These people believe their top priority is making more money and will want recognition for their financial success, for example, a trophy house, an expensive car, or some type of toy that represents their wealth.
Next up is the person who is indifferent to money. This person rarely thinks about money. They never worry and are not very responsible with their finances. They feel that money shouldn’t influence important decisions and usually believe that they only need a modest amount of money to be happy.
The last money personality type is the saver and spender. This is probably most of us. Someone who saves a little and spends a little. This person is smart with their money for most of the time but then given the right circumstances, spends impulsively out of nowhere, usually regretting later.
So how did you do? These traits are taken to the extreme in my opinion, but it is a good exercise to uncover your reaction to each trait and perhaps work on changing your relationship with money for the better.
Christine Ibbotson is an author, finance writer and a national radio and television host. Send your questions through her website at askthemoneylady.ca