Your Money Personality & Financial Success

Money personalities help explain people’s behaviour in terms of earning, spending, gifting, borrowing, saving and investing. The money personality is also a strong indicator of a person’s risk profile.

Understanding your money personality and how it impacts on your ability to achieve your monetary goals is an important first step to financial reform. From there you can identify limiting behaviours and work to effect change at both the conscious and subconscious levels.

As you go through that process you may find that your money personality changes. Or, in reading the descriptions you may notice you have changed over time. This is a normal part of your transition through life.

THE CHAMPAGNE SET is easy to identify. These individuals show a preference for top label brands and visible wealth. They are more likely to drive new models of cars, or premium brands such as Mercedes, BMW or Audi. They are fond of standing out from the crowd, and will be comfortable in their Valentino jeans and Versace T-shirt.

Where income permits they will enjoy eating out regularly and opt for superior wines. When income does not meet their appetite for buying the nice things in life Champagne Set individuals are very comfortable borrowing money, and don’t lose sleep over large mortgages or credit card bills.

HOARDERS by contrast dislike debt, and work hard to repay it. They are highly cautious in all respects preferring safe investments with low returns. Hoarders prefer to shop around for the best price on purchases and will often have favourite discount shops they haunt.

Around the home the person switching off all the unused appliances and lighting is probably a Hoarder. More than anything else these individuals worry about the future, and are very security conscious. They like to keep money on hand for the proverbial rainy day, and are sometimes accused of being stingy.

This personality type is especially prevalent in those brought up during the Depression when money was scarce.

PENNY WISE are a combination of The Champagne Set and Hoarders. The name is derived from the saying ‘penny wise, pound foolish’ – an accurate summation of this money personality. The Penny Wise demonstrates the same caution as Hoarders when it comes to day to day expenses. They make wise decisions when purchasing groceries. They often make their own lunch or employ other money saving devices that may each save a few dollars.

But when it comes to purchases where large dollar amounts are concerned the pendulum swings the other way. They will be fussy about purchasing good quality clothing from top brand names. Even the poorest Penny Wise will purchase expensive new appliances (because you can trust the brand) rather than a reconditioned or shop soiled model.

Unfortunately the extra expense on larger purchases outweighs any savings on living expenses and the individual is left wondering why they can never save.

BARGAIN HUNTERS are every marketer’s dream. As the name suggests, these individuals enjoy shopping, particularly when they think they are getting a good deal. Purchases are frequently made without regard to need. As a result they may lie unopened in a cupboard, or be thrown out. These individuals also enjoy giving, and often use this as an excuse for shopping.

Sales will definitely attract Bargain Hunters, as will special incentive programs such as loyalty cards. While some people loathe going to the shops Bargain Hunters think of it as a pick-me-up. Underpinning this is a desire for love and comfort.

Bargain Hunters are not as comfortable with debt as The Champagne Set or Gamblers but they are likely to have hire purchase or credit card debt.

GAMBLERS are eternal optimists. While the name may conjure up images of a roulette wheel, Gamblers are defined by their attitude, and may have no interest in conventional gambling. These individuals have an all or nothing approach to life and they love making deals.

Where money is concerned they can be reckless. They always expect that the next wave will be the big one so they’re prepared to try time and again. Where other individuals may feel defeated by a failed investment or business, Gamblers are resilient and have no hesitation in moving on to the next venture. Gamblers tend to be rich or poor, but not in between.

DON'T KNOW refers to the level of financial literacy an individual has. This money personality usually has no idea how much they earn or spend. Like many of the personalities they don't know how much debt they have or what it’s costing them. Don’t Know usually experience financial difficulty and it’s not unusual to find that their outgoings exceed their income.

These individuals tend to have high consumer debt, and may borrow from non-mainstream financial institutions. These have high interest rates (sometimes in excess of 50%) and the cost of debt servicing further compounds their problem.
Unfortunately this money personality tends to be a big spender. Many are small items, such as lunches or takeaways, but the cumulative effect is significant.

POOR ME is a variation on the Don’t Know money personality. Poor Me experience all the same characteristics with the added ingredient of helplessness. Both personalities require education, but the Poor Me would prefer someone else to fix the problems and hasn’t reached the point of accepting that they are responsible for making changes.
They believe they are a victim of their circumstances and find it hard to move past that point. Poor Me hope to be rescued from their plight.

WIZARD is one of the rarest money personalities. They know what they spend and earn, and have a plan to ensure all expenses are minimised. They will have sufficient passive income from investments to allow financial freedom. The Wizard will borrow, but only for purchasing investments.
Financial wizardry is the point most people want to achieve but each of us has our own goals that suit our unique personality.