Who is a money spender

Since you are so in control of your finances and know where your money is coming and going, now is a good time to relax and maybe consider a financial adviser to help you take your mind off money now and then. Recognizing your money personality can be your first step toward financial health. Knowing what drives your financial decisions will help you reach your money goals. An official website of the United States government Here's how you know.

Young Leaders of the Americas Initiative. What is your money personality? By Young Leaders of the Americas Initiative. By Jewelle Saunders No matter how you have managed your money in the past, it is important for you to now equip yourself with the knowledge you need to make sound financial decisions for a strong financial future.

The Avoider Is this you? The Saver Is this you? But when it comes to establishing financial health, one thing most people fail to consider is their money personality type — or their approach and emotional responses to money. We each have our own beliefs and emotions about money, and they are mostly shaped by our individual life experiences e. In my plus years of researching the psychology of money and happiness , I've found that there are seven distinct money personality types.

Typically, we fall into a combination of many types, and not just one. Identifying which types you fall under, and understanding the pitfalls of each, can significantly improve your relationship with money. It can help you do things like spend less on impulse purchases, be better about budgeting, invest wisely and ensure a nice nest egg for retirement.

Pitfalls: Some Compulsive Savers are so afraid of losing money that they go their entire lives without spending any of what they worked so hard to save. For example, they might choose to skip out on hobbies or activities that could bring them happiness and purpose.

Money advice: It's all about moderation; learn to find a balance between saving money and enjoying life. Think about where you see yourself in the future and how you can use your savings to get there. Pitfalls : Even if they have large amounts of debt, Compulsive Spenders will often continue going on shopping sprees.

They may even try to hide large purchases from friends and family. In extreme cases, they can be at risk of going bankrupt if they consistently spend more than they earn. Money advice: Creating a budget plan will help you see things from a different perspective.

Remind yourself that buying a new car when you already have one , for example, means sacrificing money on essential things like saving for retirement or paying off debt. Pitfalls: While Compulsive Moneymakers are usually on a strong path to achieving financial freedom, they can enter dangerous territory if they start neglecting important relationships to prioritize growing their wealth e.

Money advice: Recognize that there's more to life than money. Unchecked credit card interest can wreak havoc on your finances, so think before you spend — particularly if you need a credit card to make the purchase. Try to focus your efforts on saving the money you have. Learn the philosophy behind successful savings plans and try to incorporate some of those philosophies into your own. If spending is something you do to compensate for other areas of your life that you feel are lacking, think about what these might be and work on changing them.

If you are a debtor , you need to get your finances in order and set up a plan to start investing. You may not be able to do it alone, so getting some help is probably a good idea.

Deciding on who will guide your investments is an important choice, so choose any investment professional carefully. Financially speaking, you are doing great!

Keep doing what you are doing, and continue to educate yourself. While you may not be able to change your money personality, you can acknowledge it and address the financial challenges that it presents. Managing your money involves self-awareness; knowing where you stand will allow you to modify your behavior to better achieve your financial and life goals.

Investing Essentials. Retirement Planning. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses.

Table of Contents Expand. The Five Money Personality Types. They're not checking bank statements closely and are not thinking about building up savings. Because of this, a financial crisis may happen if an unexpected expense comes up. I want to make it clear that NONE of these money personality types are bad.

Regardless which category you fall into, be aware of your habits and attitude toward money so you can be financially stable and prepared for the future. Financial Wellness.

Monday, January 8, - The Saver The saver typically loves saving money and finding bargains.