Practically speaking, everything in life is determined by personality and your reaction to money is not left out. Your belief about money may be as a result of your upbringing, life experiences, the environment you grew up into or the financial education and savviness you’ve been exposed to.
Financial experts made it known that knowing your money personality is the first step to making smart monetary decisions such as how to earn, spend, invest, and save money.
The truth is everybody has an attitude towards money. And if you followed our post last week, you’d see why you should know your money personality. It matters in your love affairs!

Types of money personality

1. The Big Spenders

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Big spenders are people who are not afraid to spend their money – no matter how huge or little. And, there is really nothing wrong with throwing your money around as long as it is yours and you don’t OVER spend, But what happens when it unavoidably leads you into debts?
While some big spenders have more than enough in their accounts and do not fear poverty, most run into debts because they only spend money to feel a sense of abundance or keep up with the Joneses.

Ways to improve
Because you have the tendency of running into debts, here are some tips to help you manage your habit.
• Live on a budget (You can download our budget template here to guide you).
• Look to spend your money on things of value, not things that get pittered away.
• Be sure you are spending for happiness and not just to keep up with the Joneses.
• Make sure you are investing your money for growth and not just spend alone.
• Understand your motivations for spending.

2. The Savers

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Savers are smart managers of money. They always keep track of their finances and every penny matters to them. This is because many of the savers know what financial hardship means and they don’t ever want to experience it again. They are apt with almost all the cost saving tips and usually avoid debt.

Ways to improve
Because savers know how to make the most of every coin and paper, they sometimes miss out on enjoying life. So it is good to do the following:
• Don’t let fear be your motivation for saving money
• Stop sacrificing too much fun for the sake of a few pennies. Be free to balance enjoyment of life with your natural tendency to withhold spending.
• Life happens to people, don’t be scared of having contingency plans for your money.
• Create worst case scenario lists for what you think might go wrong and plan emergency funds for it.
• Think about what you might be missing out on if you don’t spend money. If it’s going to be a big regret, you should try reviewing your saving goals.

3. The Debtors

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Debtors are people who spend more than they earn. They often borrow money they may not be able to repay, or be broke way before the end of the month. Although it could be circumstantial, like your car breaks down and you need to get it fixed, most debt occur simply because you aren’t managing your monthly budget well enough.

Ways to improve
No matter how easy it may seem to enter into debt, it is very costly. Imagine using your hard-earned money to pay interest on the debt you could have avoided? So you just have to;
• Create a plan for minimizing your debt.
• Learn about the financial concept of scarcity. (Sometimes you self sabotage by clarifying your needs from your wants)
• Strive to pay off your balances in full every month.

4. Investors


Investors are Risk takers. They are people who are willing to stake their finances in order to reap a higher return or bigger reward.
The saying no risk, no reward is their watchword and motivation. Risk takers would literally buy an asset, no matter how expensive, with the hopes that the value will increase someday. While some investors are analytical and can see the end of their investment at an early stage, most of them don’t and only follow the tide.

Ways to improve
Although taking risks is necessary sometimes, it doesn’t mean you should stake money that you are going to need in peril. You shouldn’t follow the multitude when you hardly know what they are doing.
So you can try to do the following:
• Invest only the money you might not need in a long time
• Make your research and be sure of any investment you make.
• Develop an Investment Policy Statement to help you make clear headed financial decisions
• Be careful of taking too much risk with your investments.
• Think about creating a balanced investment portfolio that aligns with your spending needs

So, there you have it. Knowing what drives your financial decisions can help you reach smart money goals. You should strive to balance your finances by having a blend of the money personalities mentioned above. You can also download our saving and budget template here. It will guide you on how to be prudent with your earnings.

Still not sure of your money personality type? You can take our quiz here to find out your attitude towards money.
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