Researchers have found that every one of us can be broadly classified under 7 different personality types.
These money personality types are based on your relationship with money and what steps you can take towards achieving financial independence. Here are the 7 different money personality types -
Compulsive Saver - Compulsive savers are very frugal in nature - they look to save money endlessly with no particular goal. Their thought process is to save for a rainy day while skipping out on hobbies and activities that would give them enjoyment. With money stashed away in their savings accounts, they feel secure with their finances. Unfortunately, your money isn't growing or working for you and you are in fact, losing money. It is a good habit to save but you also need to enjoy things in life and spend it on your family. Create financial goals for yourself.
Compulsive Spender - They often spend money on things they don't need, sometimes just to impress others. Spending money gives them happiness - they like to call themselves shopaholics. It gives them immediate gratification. Unfortunately, you are always looking to spend the money that you earn with no savings goal in mind. You may even take on loans and credit cards to meet your spending needs, pushing you into debt. With no savings or an emergency fund, a rainy day will have a huge impact on your finances.
Compulsive Moneymaker - Very common with the toxic hustle culture prevalent today. They believe earning more money is the secret to happiness. They spend all their time trying to make as much money as possible. They want to be recognized and applauded for their financial success. Unfortunately, you are neglecting your health, your sleep, your personal life, and your relationship with your friends and family by constantly being on the hunt for more money. There is no end to how much money you can earn, hence, a better goal is to have financial independence.
Indifferent to money - They rarely think about money and feel that money shouldn't influence important decisions in life. They feel they only need a modest amount of money to be happy. This is a nice goal to have since happiness is the ultimate want for many. However, an important thing to remember is to always have enough money to cover your needs and any possible emergencies.
Saver-Splurger - They have common traits between Savers and Spenders. They start by saving a lot of money but then give in to their spending impulses out of nowhere. It is usually a particular type of craving or desire or interest to which they are addicted or have no control over. At times, you may spend money on things that you don't need or rarely use.
Gamblers - They have common traits between Moneymakers and Spenders. Gamblers like to earn a lot of money but they do so by gambling away their existing money. This results in paramount losses as sometimes gamblers simply gamble away their money just to escape boredom.
The Worrier - They are constantly worried about money and their finances. It does not matter how much money they have - they are constantly worried that they will lose money at any given moment. They let worry and anxiety eat away at their happiness in the present moment. It is important to live in the present and forget about things that are not in your control.
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