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Money Personalties
talessi@ariesfoundation.org
At ARIES Foundation our mission is trying to help everyone have a better relationship with their money, however when it comes to establishing financial health, one thing most people fail to consider is their money personality type or their approach and emotional responses to money.
Part of our concept is the idea that we all have our own beliefs and emotions when it comes to dealing with money, and that these feelings are mostly shaped by our individual life experiences (e.g., passed down from our parents or influenced by our current situations). Most people will share traits from a combination of many types, not just one, but usually there is one trait that is more dominant or the driver for most of our money behaviors.
Identifying which type(s) you fall under, and understanding the pitfalls of each, can significantly improve your relationship with money. It can help you do things like spend less on impulse purchases, be better about budgeting, invest wisely and ensure you are on the way to achieving your financial goals.
1. Money Pack Rat
Some signs that you might have this trait:
• You constantly put money away, sometimes with no actual end goal in mind.
• You believe saving money is the only way to feel more secure in life.
• You’re very frugal. (Friends will often come to you for advice on which finding low cost items, which point cards are worth it, or when to buy plane tickets at the lowest price.)
Pitfalls: Some Money Pack Rats are so afraid of losing money that they go their entire lives without spending any of what they worked so hard to save. For example, they might choose to skip out on hobbies or activities that could bring them happiness and purpose.
ARIES advice: It’s all about moderation; learn to find a balance between saving money and enjoying life. If you have a plan for your future and how you can use your savings to get there, then it may give you the freedom to be able to enjoy some of your money today.
2. The Spendthrift
Signs you might be a Spendthrift:
• You tend to spend money on things you don’t necessarily need.
• You have an outgoing personality and love treating people to something special, sometimes for no particular reason.
• You are an emotional spender, when in distress, your solution is to spend, especially for immediate gratification.
Pitfalls:
Even if they have large amounts of debt, a Spendthrift will often continue going on shopping sprees. They sometimes will try to hide large purchases from friends and family. Most times they are spending beyond their means, which can put them at risk of bankruptcy and other debt proceedings.
ARIES advice: Creating a budget plan will help you see things from a different perspective. Remind yourself that spending without really needing (emotional buying) often means we are sacrificing money for future savings, things like saving for retirement or education or even paying off debt.
3. The Money Hustler
Some signs that you might have this trait:
• You believe that earning more money is the secret to happiness.
• You focus most of your time & energy on trying to make as much money as possible.
• You derive pleasure from the approval and recognition from other people for your financial success.
Pitfalls:
While having the Money Hustler trait is not necessarily a bad thing and it does usually mean the person is on a strong path to achieving financial freedom, they can also start down a negative road by neglecting important relationships to prioritize growing their wealth (e.g., choosing to work on weekends over spending time with loved ones).
ARIES Advice: Recognize that there’s more to life than money. And if you do have a sizeable amount of wealth, give it purpose by helping others, whether that means donating to an important cause or treating yourself to that family vacation you’ve been talking about for years.
4. The Money Hippie
Signs you might be a Money Hippie:
• You rarely think about money (and just the idea of creating a budget makes you nauseous).
• In extreme cases, you believe that money is inheritably bad or evil.
• You feel strongly that money shouldn’t influence important decisions in life.
Pitfalls:
Many people who are indifferent to money feel they only need a modest amount of money to be happy, which is definitively a healthy mindset. But things can get ugly if they’re not responsible with their finances (e.g. depending on a partner or spouse to do the work for them).
ARIES Advice:
It’s not about having a budget, it’s about knowing where you are spending your money. Even if you are financial comfortable it’s still healthy to know things like where your money is going, what your monthly expenses are, and where you stand on debt. Doing all these things can save you a lot of financial stress in the future.
5. The Roller Coaster
Signs that you might be a Roller Coaster:
• You share common traits between Savers and Spenders.
• You start out saving a lot of money, but then give into spending impulses out of nowhere.
• When you do use your savings, you might spend on things you don’t need or will rarely use.
Pitfalls:
It can be emotionally exhausting when the pendulum swings from compulsive saving to compulsive splurging. Roller Coasters often end up stressed and disappointed in themselves for working so hard to save money, only to lose it so quickly.
ARIES Advice: Like Spendthrifts, Roller Coasters rarely put a lot of thought into what they’re spending on once they’ve decided to splurge. Before any big purchase, take a break (24 -48 hours) before buying the item, imagine how you might feel the following week or month ahead. Don’t lose sight of your financial goals.
6. The Gambler
Signs you might be a Gambler:
• You share common traits between Money Hustlers and Spendthrifts.
• The thrill of risk and promise of reward is a pleasure unto itself that you can quickly get lost in.
• You gamble or take risks with your money sometimes for the purpose of escaping boredom.
Pitfalls: Gambling comes in many forms beyond just betting or going to a casino. Some Gamblers take risks with their investments as well, sometimes putting either their own retirement money or children’s college in jeopardy
ARIES Advice: The goal is to be sure with the financial risks you take. Balance and security are essential to have, so start by setting aside monthly savings before engaging in any risk-taking decisions.
7. The Worry Wort
A Worry Wort might have these traits:
• It doesn’t matter how much money you have — you’re constantly worried that you’ll lose it at any given moment.
• You lack confidence in your abilities to achieve financial freedom.
• Your underlying fear is that you are going to run out of money.
Pitfalls: It’s smart to be aware of what could happen if you don’t prepare for your future. But letting worry and anxiety eat away at your happiness in the present moment is never a good thing.
ARIES Advice: Seek positivity around money conversations. Work on understanding where your financial worries are coming from, whether that means talking to a financial advisor or a money coach.
Got Questions? Ask Us. We Can Help With That!
The ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to the mission of trying to help everyone have a better relationship with their money. Want to learn more about how you can be better with your finances? Contact info@ariesfoundation.org
or visit our website: www.ariesfoundation.org
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