The Three Money Personality Types

Character traits regarding money can be classified into three specific groups. This subject has been analyzed in a variety of ways, and many people can identify with parts of several of these money personality profiles. The key is to find the type that most closely matches your behavior. The major profiles are spenders, savers, and investors.

Spenders

Spenders love nice cars, new gadgets, and brand-name clothing. People with a “spending” personality type are typically shoppers; they like to be fashionable and always looking to make a statement. This often means a desire to have the latest and greatest clothes, mobile phones, the biggest television, and a beautiful home.

When it comes to keeping up with the Joneses, they often spend beyond their means even if it gets them into debt. Showing that they are living the “lifestyle” is more important to them than having money in savings.

Spenders can often have bigger egos than the savers and investors. Spenders may have employer sponsored investments accounts that may participate in but they rarely review the performance if they do. Spenders believe “it will all work out” and that they will always figure a way to make money. Spenders see investing as something they will get to eventually. Spenders are not typically financially educated.

They are comfortable spending money, don’t fear debt and can often take big risks when investing. Spenders generally spend more than they earn and are often deeply in credit card debt while not putting much thought into investing.

They simply don’t spend much time thinking about their money and therefore don’t keep tabs on what they spend and where they spend it. They typically don’t have much in savings and they have no “Plan A” or “Plan B”

Savers

Savers are the exact opposite of spenders. They turn off the lights when leaving the room, close the refrigerator door quickly to keep in the cold, shop only when necessary, and rarely make purchases with credit cards. They generally have no debts and may be viewed as cheapskates.

Savers are not concerned about following the latest trends, and they derive more satisfaction from reading the interest on a bank account than from acquiring something new. Savers are conservative by nature and don’t take big risks with their investments, if they have any. Savers have “Plan A” only, which is their savings.

Savers are generally stable hard working employees and typically let others manage their money through an employer sponsored investment plan and if thats not offered they typically have most of their cash in a financial institution, like a bank.

Savers typically do not understand money or inflation and often fear investing. Savers are not typically financially educated but have lower egos than the spenders.

Investors

Investors are consciously aware of money. They understand their financial situations and try to put their money to work.

Regardless of their current financial standing, investors tend to seek a day when passive income will provide sufficient income to cover all of their bills. Their actions are driven by careful decision-making, and their investments reflect the need to take a certain amount of risk in pursuit of their goals.

Investors can vary on their own level of financial education but are typically open and learning constantly. Investors try to take calculated risks with investing and ask a lot of questions. Investors typically have credit cards but pay of these balances monthly so they are not subject to to high cost of interest by having an on-going balance.

Investors typically try to have cash reserves for liquidity in a some type of financial institution just in case something goes wrong. They usually have a “Plan A” and a “Plan B”.

Investors are typically active in a variety of ways for their money to make more money such as the stock market, real estate, and businesses. Investors can sometimes have big egos, like the spenders.

Investors may be employed or self sufficient as a business owner of entrepreneur. Investors often use investment managers but will actively manage them as opposed to just opening their statements and not asking any questions.