People have beliefs and emotions about money, mostly shaped by life experiences from an early age.
Behaviours are, for the most part, learned (some could also add imitation as an aspect of learning), including what is passed down from parents.
These learnings generally influence our money decisions and, eventually, our financial situation. The outcomes could be positive or negative but they also could leave us conflicted.
Today, we explore the various money personality types, the relationship each personality has with money and how to manage the associated negative aspects.
1. The Hoarder/ Worrier
Money represents security for hoarders who may even stash cash that they would be better off spending or investing.
Hoarders are risk averse. No matter how much money they may have, hoarders are typically constantly worried that they could lose it anytime.
Hoarders lack great confidence in their ability to achieve financial freedom and constantly obsess over what could happen if they run out of money.
British psychologist and author of the book Mind Over Money, Claudia Hammond, says that if one was raised in a family where money was tight, they might develop hoarding tendencies.
Tip: If this is you, find an adviser who can help you by discussing the right investment approach and the level of risk for you.
In so doing, you could be able to increase your security by having your money work for you as it accrues interest than if it was kept in a bank account or stashed at home.
2. The compulsive saver
The signs you might be a compulsive saver include putting away money endlessly and, at times, with no actual financial end goal in mind.
Just like the hoarder, a compulsive saver derives security from the belief that saving money is the only way to feel more secure in life.
In addition, a compulsive saver is frugal.
Tip: To enjoy your money, it is best to do everything in moderation and also balance your life between saving money and enjoying life.
Try visualising an ideal financial future, and formulate and stick to a plan that can get you there by utilising your already well-developed saving culture.
3. The compulsive spender/splurger
Unlike the compulsive saver, the compulsive spender will go to the extreme blowing their money on things they don’t necessarily need.
Since the spending is spontaneous, a compulsive spender could throw parties and treat people for no particular reason.
This kind of personality also takes spending as a way out of emotional distress.
Splurgers not only view themselves as generous, but they also use their money to have others think more highly of them.
Tip: Adopt a budget plan. This will help you create a habit that will help you see things differently by questioning impromptu spending.
With a budget, buying a new pair of designer shoes will not be a priority if something else is essential in that budget.
READ: Ten modern ways Kenyans can make money online in 2023
4. The compulsive moneymaker
This personality believes that earning more money is the secret to happiness.
Thus, they spend most of their energy trying to make as much money as possible.
Compulsive moneymakers derive pleasure from the recognition and approval they get from others because of their financial success.
Tip: There is more to life than money. To deal with this personality, helping others, donating some of your wealth, or just taking time off to be with loved ones can help dissipate the urge to make money endlessly while neglecting other aspects of life.
5. The Gambler
A gambler shares common traits with compulsive moneymakers and spenders.
This personality finds thrill in risking much because of the promise of reward and the pleasure that such a reward could bring.
Sometimes, a gambler could risk gambling away their money to escape boredom.
Tip: One needs to be introspective and strict with financial risks. In addition, consider nurturing a habit of setting aside some cash monthly before making any big financial decisions.
6. The money monk/Indifferent-to-money
A money monk will rarely think about money; when they do, they may treat it as dirty, that it is bad, or that it would be corrupting by having too much of it.
Such a person feels that money should not influence important decisions in life.
Tip: Even when financially comfortable, it is important to know where your money goes, your monthly expenses and where you stand if you have an outstanding debt.
By doing these, a money monk can avoid financial surprises that could pop up in the future.
READ: How to Politely Refuse Lending Money to Family & Friends
7. The free spirit
This identifies with a number of money personalities, from being a hoarder sometimes to getting very generous in others. On different occasions, they could either be comfortable being reliant on others or loathe the idea of being a burden.
Such a person is easygoing but lacks the needed discipline to secure their finances. They could be termed as being financially bipolar-disordered.
Tip: Create a budget to help you deal with the priorities in life. Even when oscillating between personalities, strive to follow your budget, which will help discipline your financial habits.