What Is Your Money Personality?

When it comes to money there are two main types of money personalities; the spenders and the savers.

If you keep track of all your expenses and set aside a portion of your income each month, then you most likely have a “saver personality”.

If however you spend all your money and never set anything aside for a rainy day or are in debt, then you probably have a “spender personality”.

Most people fall somewhere in between these two extremes, although ever since the introduction of the credit card there has been a gradual shift towards the spenders and away from the savers.

This shift towards spending more, is something which collectively has resulted in the entire western economy getting itself more and more into debt.

This debt is now largely responsible for the financial crisis we are currently in, which makes saving your money today all that more important.

What’s Your Money Personality?

Understanding your money personality can make a dramatic change to your financial situation, as it will allow you to identify and reverse any unhealthy financial habits you may acquired.

However if you are unsure of what your money personality is, answer the following questions to find out:

• Do you have any outstanding debt? Such as credit card debt?

• Do you use a credit card to buy things you don’t have the money for?

• Have you ever taken out a loan or cash advance?

• Does your credit card bill often contain expenses for things you can’t remember spending your money on?

• Do you buy things to make you feel better?

• Do you only buy what you need, or what you want?

• Do you buy things you want immediately?

• Do you spend a lot of money on entertainment?

Personality Analysis

If you mostly answered no to the questions above then congratulations, you have a “saver personality”!

As a saver you most likely know exactly where your money goes, and are careful spending it.

You also probably have a reasonable amount saved up in the bank, and consider yourself to be financially secure.

If you mostly answered yes to the questions above, then you have a “spender personality”.

You most likely buy things on impulse even if you can’t afford them, and don’t hold onto your money for very long.

If you do have savings, they probably aren’t very much, and there is a good chance you dip into them occasionally when you feel the need to.

The Dangers Of Being A Big Spender

If you have a spender personality you probably think that life is for living, so why not enjoy yourself now and worry about the future when it comes?

As a result of this belief you spend your money almost as quickly as you get it, and if you don’t have the money you will try and get it on credit.

Whilst this may sound like a fun and carefree way of living, when it comes to your finances this is very often a disastrous money personality to have.

Even if you do die early (and so won’t have to repay your debt) your family will most likely have to repay it for you, as the creditors will quickly swoop in on your wife and kids trying to get the money from them.

But in all likelihood you won’t die when you are young, and will probably live to a least 70 years old. What happens then?

Well, if you have been accumulating debt all your life, eventually there will come a time when you can no longer afford to repay the monthly repayments, never mind the entire debt.

When that happens you will be in a very bad financial position, one which will be extremely difficult to reverse and could even result in you becoming homeless.

Can you imagine being homeless when you are 50 or 60? Or trying to survive on a government pension?

Well that’s a very real scenario your current money personality is putting you on track for, and something you should definitely want to avoid by learning how to manage your money properly.

Note : For more information about the type of money personality you have, see the following article :

“Do You Have A Bad Money Attitude?”

The Joys Of Being A Saver

If you have a saver personality, then managing your money successfully is going to be a lot easier for you.

But just because you are a saver, that doesn’t mean you can become complacent and think that there is no need to pay attention to your finances.

For example, you may be saving your money, but are you saving it in the right place which gives you the highest rate of return?

Are you saving enough? Could you be doing more with your money to protect your financial future, such as investing in precious metals like gold?

So if you are a saver be proud of that, but just remember to always keep an eye on your money.

Knowing When To Save And When To Spend

Being a saver doesn’t mean you can never enjoy yourself by spending your money, after all, that’s what money is for, to buy the things you need, and sometimes, the things you want.

Even if you do save all your money for the future, there is no guarantee you are going to be around to enjoy it.

Some people do not reach retirement age, and so all the money they have saved throughout their lifetime goes to their family when they die, or is lost and forgotten about.

So the key when it comes to saving is not to go overboard and live a life in which you save all your money, but never treat yourself. Life goes by quickly, and so you should make the most of every minute of it, now and in the future.