Many psychologists across the globe believe that how we deal with and interact with money, including both our saving and spending habits, are largely based on how we saw our parents handle money. Were they frugal or did they always buy the latest big screen TV and flash new cars? Did they rely heavily on credit cards or were they investors?

This week we’re exploring the five key money personality types as well as some tips to help improve your personal finances based on which type you are:

  1. Big Ticket Spender

This money personality type is the one with the flash new house, brand new car and largest flat-screen television that money can buy. They are typically also wearing the latest fashions and largely focused on having their spending make a statement for their friends and family members to represent their success. This type is not necessarily materialistic, but they do need to have the latest and greatest with new products.

Tips: A key tip here is to have clearly documented financial goals and a plan on how they will be achieved. This way you may be able to continue to spend on the items that are important to you and ensure that this won’t ruin your chances of achieving your financial goals. Make sure that your savings and other steps to achieve your financial goals take place before your discretionary spending.

  1. The Saver

Savers are often said to be ‘cheap’ or ‘frugal’ and many won’t even have credit cards. Spending large sums of money typically makes them feel uncomfortable and they take great satisfaction in finding a bargain or avoiding spending. They also tend to be more conservative with their investments having a lower tolerance for risk and volatility.

Tips: Often some risk is required to achieve financial goals, so it’s important to review your risk tolerance closely, and ensure that you’re taking on an appropriate level of risk to achieve your financial goals. It’s also important to take time to enjoy your money that you work hard for, so be sure to give this some thought.

  1. The Debtor

Debtors are the money personality type that tends to spend the least amount of time thinking about their money and personal finances. They don’t tend to spend any money to make themselves feel better or feel bad for over-spending, they simply don’t give it any thought. This often leads to credit cards and other personal debts that they have no idea about as they don’t spend any time tracking it, which can often create some significant future financial problems.

Tips: If monitoring your personal finances is not for you, we would recommend seeking professional advice from a financial planner to put systems in place to track this for you and avoid some potentially disastrous financial decisions.

  1. The Shopper

The shopper tends to have strong emotional ties to spending money. The larger their bank account balance, the happier that they tend to be. This money personality type tends to spend a lot of time and money on purchasing items that they may not even need with the aim of making themselves happy.

Tips: It’s important to put systems in place to avoid over-spending and damaging your future financial position. Firstly, ensure that your financial goals are documented with strategies in place to achieve them. It’s also important to ensure that any savings are automated and allocated before the discretionary spending can take place. Secondly, consider setting spending limits on a daily or weekly basis to avoid excessive over-spending.

  1. The Investor

The investor is a money personality type that is heavily focused on their future, and dedicates time on a regular basis to review their investment portfolios and overall personal finances. Their personal finances are typically very well organised, bills are paid on time, spending is tracked and well thought out and each of their financial goals is written down with a clear plan on how it will be achieved.

Tips: This money personality type requires little in the way of improvement. Our key suggestion here is to continue to review financial goals and remember to celebrate the small successes along the way.

Your money personality type can have a significant impact on your ability to save up your property deposit. By identifying your strengths and weaknesses, you can put in place the necessary steps to improve your personal financial position.


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