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Recently, I noticed how different my siblings and I are when it comes to money. One’s more chilled and always has money saved up. I on the other hand am more prone to worrying and thinking of the future. Then, of course, the last born of the family blows every Pula he has without a second thought. This was so baffling to me since we’re raised by the same parents, how could we be so different?
A lightbulb went on when I stumbled upon the 22Seven budgeting app and consequently their blog which shed light on the psychology of spending, and how we can do better with money.
Money Personality Types?
A person’s spending style or money personality is often something they are barely even aware of – simply because it feels natural and normal to them. Yet different people’s approach to handling money varies drastically. Your spending style is rooted in something deeper than your upbringing, your income bracket, or your financial education. Just look at how differently siblings manage money, and you’ll see that this money personality is not something a person is taught. It lies in our specific psychological makeup.
22Seven.com
The Big Spender: “Life’s too short, live in the moment.”
Big Spenders experience freedom in finances and are usually generous. Not only with themselves but with others as well. They’re usually the persona that isn’t afraid to take risks when it comes to investments.
However, planning for a financial future doesn’t come naturally or easily for them. Learning to avoid impulsive spending, developing weekly budgets and delayed gratification will go a long way in helping this persona achieve their financial planning goals.
The Avoider: “Huh? What are you talking about?”
The Avoiders are the persona that’s not controlled by money or let finances rule their lives. True to their persona, Avoiders are uncomfortable with conversations about money. Often, their hope is that things will work out with little to no planning. Because of this Avoiders can often find themselves in debt, eek!
Thankfully, there are many ways to automate savings and investments as safeguards for a healthier financial future. A step-by-step approach will help this persona find the rhythm to a healthier financial future.
The Money Hoarder: “Money equals security, pinch the pennies, Honey.”
Money Hoarders tend to feel guilty when they spend money and have an eye for a good bargain. These are the friends that’ll sneak snacks into the cinema and are often prepared for emergencies. Because Money Hoarders are rarely in debt, they’re that friend you can always count on to have money when you need help.
Money Hoarders need to be reminded to reward themselves for working hard and making good financial decisions. And need more encouragement to take risks to grow their money.
The Money Boss: “I got this”
This is the persona we should all aspire to be. The Money Boss is aware of the pros and cons of their persona and has found a way to boss their money like a pro.
The Money Boss isn’t perfect. The key to their success is using their strengths and weaknesses to work for them, not against them.
No matter your money personality, with careful planning and good budgeting you can become a Money Boss. As the old proverb goes, “careful planning puts you ahead in the long run”.
Which money personality are you? Let us know in the comments. Have a good laugh and share this with a few people.
** This article is proudly sponsored by FNB Botswana**
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