Common Money Personalities

Successful people come in a variety of types, but a common denominator in successful people is that they have a good awareness of their own personality with money. Money personalities affect the way we behave when making financial decisions and how we go about spending, saving and investing.

Successful people come in a variety of types, but a common denominator in successful people is that they have a good awareness of their own personality with money. Money personalities affect the way we behave when making financial decisions and how we go about spending, saving and investing. It really helps to know our own money traits.

Most behavior changes begin with having self-awareness. This is no different when the behavior change is desired to improve our financial outcomes and progress towards good financial health. I have learned that the happiest and most successful people learn how to balance spending and savings to become financially peaceful. But like many examples in life, finding balance is not always easy.

A few common money personalities are:

  • Spenders seek emotional comfort in spending. They find social status to be important and part of their self-worth. They feel they deserve to spend and like the attention it brings them.
  • Savers see money as a means to obtain security. They can be a bit too frugal, focusing on the scarcity of money and unable to enjoy financial success other than the satisfaction of savings towards it. They tend to think in terms of interest.
  • Avoiders/Shoppers are not comfortable with the subject of money. They often use the act of bargain shopping to avoid the topic of investments and instead focus on attaining bargains. This gives them great satisfaction for having gotten a good deal and fostering the sense of being good with money in spite of having spent it.
  • Debtors do not have a sense of budget and oftentimes spend more than they make and miss opportunities to save.
  • Investors are the “ideal” state. Investors are aware of money and tend to seek a day when passive investments provide them with “independent wealth.” They have found balance and enjoy how money can provide both security and opportunity for the enjoyment of life.

Having an idea of our personality with money is a good starting point as we seek to find an ideal state where our financial life is balanced.

A spender would be wise to focus on things they will use and need rather than on the things they desire or want. Spenders should set a budget and consider using cash rather than credit.

Savers might seek to live a bit more in moderation and acknowledge the fleeting nature of life and how there can be a lot of positive memories created while spending money. Also, with today’s low interest rates, a saver may find it impossible to attain financial goals with only conservative investments. It is difficult to save your way to retirement.

Avoiders/Shoppers can benefit from learning more about the day-to-day management of their finances and financial plan. Setting priorities first before seeking a deal on a new purchase will help change the state of mind. Shoppers should learn that a sense of satisfaction and happiness can be found in so many other pursuits that do not involve money. Exercise, spending time with friends and family, and self-improvement are all ways to cultivate a sense of purpose and meaning.

Lastly, debtors should re-consider their future and set up a plan. Seeking assistance is imperative if you are on an unsustainable path.

I suggest we all consider what traits influence us and identify our money personalities. I believe that gaining that awareness can improve our financial outcomes. Knowing where we stand and how to modify behavior is vital to achieving security and attaining life’s goals. We are here to help you.

Rick Manske, CFP®, CFA™
Chief Executive Officer

Share:

Recent Posts:

How To Evaluate Taking on “Fun” Debt

Personally, there is nothing more relaxing and exhilarating than being on a sailboat with a 15-knot wind on your beam (side), listening to the soft sounds of water splashing against the bow and using wind energy to propel the boat forward.

Tax-Loss Harvesting Amidst Market Turmoil

Market declines like the one we are currently experiencing present great opportunities to take advantage of cheaper asset prices. Almost everyone with a taxable account should be harvesting tax losses during times like these.

“What If” Contingency Planning

We want to ensure you are thriving, as living a healthy and successful life is truly priceless. Of all the steps that can be taken toward financial security and peace of mind, planning our own death and incapacity is the least popular. Life goals dominate our consciousness, and these goals are often about ourselves. Estate planning is not as much about us as it is about the people and things that we love.

Recent Quarterly Newsletters:

Thrive By Ensuring Your Loved Ones Are OK Edition

Our Q3 2022 newsletter focuses on how to thrive by ensuring your loved ones are OK. In it, we have created an eight-page fillable guide you can create for loved ones to follow after you pass. We also provide other guidance on estate planning, caring for aging parents and preparing for a potential disability.

Thrive by Learning and Growing Edition

Read our Q2 2022 newsletter on how to thrive by learning and growing. CEO Rick Manske reflects on graduation season and what this time of achievement and change means for students and loved ones. CIO Bill Hansen writes about education savings; President Harli Palme writes about tax savings related to college expenses; Portfolio Manager Nancy Blackman cautions about hidden costs of college. Advisor Charles Thompson outlines why it’s important that we value and prioritize travel. Advisors Judd Meinhart and Hilary Daniel write about job transitions and what to do with your 401(k) and new benefits. Advisor Neal Nolan ends with 10 ways to celebrate Independence Day and we highlight announcements across our firm. We hope you enjoy this edition!

Recent Whitepapers:

Stay Up To Date With Parsec

Sign up to join our mailing list and receive quarterly newsletters, whitepapers, news, and more right in your inbox.
Scroll to Top

Not a Client But want to receive updates?

Please sign up to join our mailing list and receive our latest news, thought leadership content and invitations to upcoming webinars.