Understanding Your Money Personalities As Christian Millennials

Estimated reading time: 13 minutes

We would be remiss if we didn’t talk about money personalities while talking about personal finances. Do you know your money personality? And do you know how to balance it to your advantage? As we all know, knowledge is power, and awareness is one key to success. In our previous blog, we talked about financial distress and in the one, before that, we talked about financial trauma. Today I knew we had to talk about money personalities.

The 5 Money Personalities
The Big spender
- Characteristics of a big spender.
- How to balance this money personality type for optimal success.
The Saver
The Shopper.
- How to manage this personality type.
The Debtor as one of the money personalities type.
- How to manage this money personality type.
Conclusion.

Money personalities affect our behavior in making financial decisions and our habits of spending, saving, and investing. Money personalities also influence our view of money.

According to cowrywise, Financial personality is how you handle money—the way you think about it, the beliefs that guide your behaviors, and the actions that result from those beliefs. Financial personality isn’t just about how much money you have; it’s also about how well (or not so well) you manage what little money comes into your life.

The goal is to ensure that you are aware of it and learn how to manage your money personality for optimal success.

The 5 Money Personalities

The big spender
The money-maker
The saver
The debtor
The shopper

To help us understand more, we will look at each one of them in detail.

The Big spender

This money personality type likes to spend their money on big purchases. And they have no problem investing in risky investments if it means they will have more disposable income to spend on.

Characteristics of a big spender.

They are very fashionable and like to make a bold statement.
They do not bargain or wait to make a big purchase. They don’t wait to see if the market will go down and hence accord them the opportunity to buy at a lower price. If they want it they are not afraid to get it.
And they always go for the latest gadgets or the latest design.
They are comfortable spending money, don’t fear debt,
Often take big risks when investing.
They live in the moment and are focused on what is happening now.
They are generous and the best way they show their affection is by spending on those they love.

The problem with this personality type is that they:

They are impractical as they rarely focus on their financial status.
They end up incurring debt to stand out and make bold statements.
Since their focus is living in the moment, they rarely have money stashed away for emergencies or even for their retirement.
One financial mistake can lead to bankruptcy and they might have a difficult time recovering if they ever do.
They struggle with guilt and sometimes depression because of their overspending habits.

How to balance this money personality type for optimal success.

Create a budget or improve on your current budget. Having a snapshot view of your finances will help you know what you can or can’t spend. List down all your income sources as well as all your bills and obligations. This will help you know your disposable income. Don’t forget to factor in an emergency fund and a savings account. Having all these in place will help you understand your financial position, leading you to make informed decisions. Testing out your budget is also something you should do. It will help you know the viability of your budget and what you need to adjust with time.
Take time before making any major purchases. This will help you avoid overspending and acting on impulses. And also this will help you know if you can afford to do it. We would spare ourselves the pain that comes with acting on impulses. Give yourself at least 24 hours before buying that latest iPhone or car.
Ask yourself if you really need the item you are purchasing. Following trends can be detrimental to your finances. You should ask yourself, why do you feel the need to make bold purchases? Does it have something to do with financial trauma? And if yes, you could seek counseling, as buying that latest car will not fix your internal pain. Therapy will help you find that balance you need between enjoying life and also experiencing financial freedom. Not having the latest iPhone will not kill you, especially if you are not in a financial position to get it.
Find other ways of showing love. Gifts and vacations are not the only way you can show your loved ones you love them. Sometimes the simple things mean way more than the flashy ones. Ask yourself, do you buy gifts to earn love? And if yes, where did it stem from? Why do you feel the need for people pleasing and earn their love? Could it be that you are with the wrong person or you feel unqualified for their love? Asking yourself some of these questions will help you avoid overspending on the name of love. Again, therapy can help you get to the root of the problem and help you make informed decisions.
Exercise patience and delayed gratification. One fruit of the Holy Spirit is patience. If you are lacking in this area, you can ask for the help of the Holy Spirit. Also, practicing delayed gratification is vital. Let me ask you this, would you rather save up now, achieve financial freedom and then have the finances to do whatever you want later? or would you rather live in the moment now and suffer later?
Be okay with saying no. You don’t need to buy your loved ones flashy and expensive gifts. Be comfortable saying no. And again, no is a full sentence.
Set financial goals. Sometimes a lack of financial goals could be the reason you are overspending. You will fall for everything if you don’t stand up for something. Maybe your first financial goal could be to set up your emergency fund. Once you have achieved that then save up for a home and have a retirement plan as well.
Have a miscellaneous account where you can splurge when you need to. And also recognize that it is okay to buy gifts for your loved ones or be generous. Just don’t overdo it.

One key thing to remember is your personality is great as well. You live life to the fullest and also your heart means that you can empathize with others and help them when they are in need.

Proverbs 27:12

The prudent sees danger and hides himself, but the simple go on and suffer for it.

Proverbs 21:20

Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it.

Proverbs 21:5

The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.

Proverbs 13:22

A good man leaves an inheritance to his children’s children,
And the wealth of the sinner is stored up for the righteous.

Ecclesiastes 11:2

Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth

The Saver

The savers are the opposite of the spenders. They don’t care about the latest trends and they are frugal. Some of their characteristics include

They are conservative in nature.
They don’t make big investments and are more cautious before they decide.
Also, they put money away sometimes with no end goal.
They link their savings with fulfillment in life.
Never reward themselves for any achievements in life.
Always feel a need to replace something they lost.
Hoard on items even when the said items have served their purpose or are broken.
Always stressed up over small expenses. Do you always fuss over the smallest increase in your utility bill even when you know you can afford to pay if comfortably?
Deny themselves basic necessities because they don’t want to spend money. Routine checkups and regular maintenance of your car and home are essential if you want to live a good quality life. What is the point of spending more in the future because you failed to take care of the little foxes?
Avoid having a social life because they don’t want to spend.

How to balance the saver personality type

Awareness. often, this personality stems from childhood trauma. What were you taught about money as a child by your guardians or parents? Did you experience a financial crisis as a child? Did you go without when you were younger? Some of these questions will help you understand where this personality came from and therefore help you stop overdoing it. Finding the root of the problem will also help you discover ways you can manage this. There is no point in denying yourself the finer things in life yet you have worked so hard. Don’t you realize that your time on earth is limited? Seeking professional help will help you identify the root of your personality. And also with the help of your therapist you will come up with a framework that will help you live a fulfilled life. The reality is that even with more zeroes on your account; you are not fulfilled. So seek therapy and find a balance.
Recognize that you have made provision for emergencies and the unexpected. Once you have an emergency fund and have planned for retirement, you should feel better. If you have a home, have saved up for your kids’ college fund, and have made provisions for every other issue you might foresee, then live your life.
Reward yourself when you achieve your financial goals. Not everyone sees through their promise. Having achieved that, celebrate it. This also helps give you motivation and also helps you celebrate yourself. Don’t be afraid to buy that thing you so want or invest in your hobby. After all, you will not enjoy your money when you are gone.
It is okay to spend on necessities. Go for that routine check-up, and make that dentist appointment. You will thank yourself for doing it. Home and car maintenance are also important, as they will spare you from having to spend a large amount later.

Proverbs 11:24

There is one who scatters, and yet increases all the more,
And there is one who withholds what is justly due, and yet it results only in want.

The money-maker

This money personality type is always looking for ways to make their money work for them. And while this is a good thing they can overdo it sometimes. Signs that your money investment type is a money-maker

They are always looking for a way to make more money,
They will choose their career over family.
They do not mind skipping important family events to make more money.
Are always educating themselves on the next investment to make more money.
They can be loners.
Are always chasing the next money gig.
Believe that making more money is the secret to happiness.
Spend their time and energy on making more money.
You get pleasure from the approval and recognition from other people for your financial success.
They make calculated risks.

How to manage the money-making personality type.

You need to recognize that money is not everything. And while it is important to have financial security, there are other aspects of life that matter as well. Spending time with your family and being there during special occasions will go a long way. Cultivate relationships with the people that matter to you. Focus on being present instead of always providing for them. Recognize that memories are important and sometimes that is what you will have left when they are gone. How would you want your family to remember you when you are gone? Have that at the back of your mind. It will help you strike a balance between making money and spending time with your family.

Take time out to reward yourself for achievements met. This will help you learn to celebrate the milestones and also help you learn to be more present. After all, life is for the living. And all work and no play makes Jack a dull boy.

Set financial goals. Have a goal in mind when you are pursuing money-making opportunities. These goals will help you realize when it is time for a break. Don’t be afraid to take a break in between achieving your financial goals and learning to reward yourself.

Be okay with saving than just investing.

Find the root of your compulsive money-making personality. It might be a good idea for you to find a therapist and deal with the core problem. Could it be that investing is how you deal with pent-up emotions? Are you an angry investor?

Overall, recognize that making money is a great thing, just don’t overdo it.

Proverbs 23:4-5

Do not toil to acquire wealth; be discerning enough to desist. When your eyes light on it, it is gone, for suddenly it sprouts wings, flying like an eagle toward heaven.

The Shopper.

Shoppers often get satisfaction from spending money. They find fulfillment when they buy something. And even use shopping as a way to deal with their emotions, hence retail therapy. Some of the characteristics include.

They spend more than they can afford
Believe that shopping is the cure for everything.
Have items in their closet that they have yet to use.
Shop to overcome the guilt of their previous shopping spree.
Have strained relationships because of their previous spending habits.
Use their spare time checking different apps on the latest trends and fashion.
Obsess over making regular purchases

How to manage this personality type.

Hiring a financial advisor could be the first key to helping you overcome this trend. The reality is that sometimes having an accountability partner is all you need to make wise financial decisions.

Again, therapy could help you get to the root of your problem and help you deal with whatever hidden emotions you are experiencing. If you shop because you are bored, finding a hobby could be the key to getting out of this.

Maintaining a zero balance will also help you out. Plan for every cent and ensure that you have a budget to help keep you on track.

Save more of your money than spend it. And to do this you might need to set a financial goal.

Take time to think before making any purchases and realize that there is life after the purchase.

Proverbs 21:20

In the House of the wise are stores of choice food and oil, but a foolish man devours all he has. The simplicity behind the idea to ‘spend less than you earn is shared clearly in this verse

The Debtor as one of the money personalities type.

They are not in tune with their finances and don’t know their financial position, therefore end up spending more than they have leading to more debts. It is almost as if this personality type is addicted to debt. Characteristics of this money personality type are.

Don’t mind taking on a new credit card.
Don’t mind making purchases using a credit knowing they will not pay it off.
You hide your debt amount from friends and family.
Always borrowing money from friends and family.
Struggle to pay your debts ij time
Your debts are greater than your sources of income.
You use debt to pay your bills and normal expenses.
You take on more debt to pay your previous debts.

How to manage this money personality type.

Contact a financial advisor to help you find a strategy to pay off your debts. And avoid taking more debt.

Have a budget and stick to it. Budget will keep you on track and prevent you from going overboard.

You could consider downsizing if you must. Focus on paying your bills and obligations to avoid taking on more debt. You could consider paying off your small debts first or paying off the high-interest debts. To learn more about debt repayment, check out this blog here.

Set up financial goals with the first one being to get out of debt. Financial goals will give you structure.

Debt is good if used wisely. But when you are reckless with it it can lead to financial distress and other financial diseases.

Proverbs 22:7

The rich rule over the poor, and the borrower is the slave of the lender.

Conclusion.

It is important to understand your financial personality type, as it will help you make informed decisions and find ways to maximize your personality to your advantage. Knowledge is power. Now that you are aware of your personality type it is time for you to make the change so that you can experience financial freedom.

Understanding Your Money Personalities As Christian Millennials

The 5 Money Personalities