Like so many others, your reaction to financial matters is heavily influenced by who you are as a person. But have you noticed your actions and how they affect your financial situation? The first step in being a better financial manager is to have an understanding of your money personality.

Moods Towards Money: Five Characteristics

We can put people into distinct buckets based on their attitudes toward money. Many people may recognize aspects of themselves in several money personality profiles developed via various analyses of this topic. Discovering the personality type that best describes your own is essential. Most of the population is big spenders, savers, consumers, borrowers, and investors.

Big Spenders

Those with much disposable income tend to have a penchant for flashy consumer goods. Those that fall into the "spending" personality type aren't usually concerned with saving money; they shop to make a statement via their appearance.

This typically manifests as needing ostentatious material possessions like the newest and most advanced smartphone, the largest 4K screen, and a picture-perfect house. Those that spend lavishly are the ones who are considered "Joneses" in the context of trying to keep up with them.

Savers

Money savers are the antithesis of profligate consumers. They only shop when necessary, avoid using credit cards, and practice other frugal habits such as turning off lights and the refrigerator while leaving the room. They rarely carry any debt and are often considered miserly. Savers don't care if they're behind the times; they'd rather see their money grow in interest than buy the latest and greatest gadget.

Shoppers

Those who shop frequently report feeling highly emotional fulfillment after purchasing. They're always making impulse purchases, even if they don't have the money. Most addicts are self-aware enough to worry about the financial consequences of their habit. They like the thrill of a good deal and actively seek them out. Consumers' financial commitments vary widely.

Debtors

Debtors are not attempting to make a political or social statement via their purchases or engaging in unnecessary retail therapy for distraction or self-improvement. They don't give much thought to their finances and so don't monitor their spending habits. Most people in debt only invest a portion of their income and, as a result, spend more than they make.

Investors

Investors have a heightened awareness of monetary matters. They have a good grasp of their financial standing and try to maximize their resources. The goal of most investors, regardless of their present financial situation, is to reach a point where their passive assets generate enough income to pay all their regular monthly expenses.

Modify Yourself Financially in Certain Ways

When you've thought about your relationship with money and identified your preferred personality type, it's time to start considering how to put your resources best to use. It is often the case that little adjustments can have a significant impact.

Spenders: Buy Less, Save More

If you enjoy them, you will probably continue your spending habits, so it's important to think about the long run and the here and now. Think about how much a high-priced or trendy item will matter to you in a year before you buy it.

If "not much," then you can go on. That way, you can use your funds more wisely and focus on purchasing items that will serve a practical purpose. Focus on long-term stability rather than short-term benefits.

Savers: Utilize Moderation

It was Ben Franklin who urged "moderation in all things." This is excellent guidance for a saver. Take advantage of life's pleasures because you're trying to save a buck.

Improve your financial fitness by tuning up your savings strategy. You can't just get by saving a few dollars here and there. Although avoiding risk is the primary objective of each investor, the key to investing success is doing so while also increasing the potential for gain.

Shoppers: Don't Waste Money

Taking charge of one's credit card usage is an important step for shoppers. If you need a credit card to purchase, carefully consider the financial impact of doing so. Save as much of the money as you can, please. Study the thinking behind effective savings strategies and see if you can apply any of them to your strategy.

Debtors: Budget and Invest

A debtor's first item of business should be to organize their funds and formulate an investment strategy. If you need assistance, it's time to look for it. Investment professionals should be chosen since they will significantly influence your financial future.

Investors: Continue Your Excellent Work

Congratulations! You are doing quite well monetarily. Don't stop learning and improving yourself.

Summary

You can probably not change your money personality, but you can work around it to some extent. Self-awareness is essential in money management; if you know where you are, you can adjust your actions to get you closer to your financial and life objectives.