What’s a Money Personality, and Which One Am I?

Most spenders fall into one of four categories, or ‘Money Personalities.’ Find out where you fall and get tailored tips on saving, investing, budgeting and spending for your money personality.

The best way to grow your financial literacy? First, look inward! It’s time to take a good, long look at your money habits, reflect on your strengths and weaknesses, and ultimately determine your ‘Money Personality’.

How’d I Develop my Money Personality?

Your relationship with money didn’t happen by random chance. Most people’s approaches have been created by:

Watching and learning from your parents financial habits and attitudes.

Early experiences with money. Did you earn money through chores, or keep a young-adult job? Did you live through financial struggles or were you impacted by an economic downturn?

Your culture. Research has shown that different ethnic and religious groups have varying approaches to personal wealth.

Your personality, believe it or not. Psychological traits, like your natural inclination toward risk, can deeply shape your financial approach.

So, Why Learn About This Anyway?

Knowing your money personality can help you lean into your natural strengths, be on the lookout for–and ultimately correct–weaknesses, and help set you up for success for a stronger financial future. As a bonus, it’s a great way to communicate about your approach to money with a partner.

The 4 Money Personalities

The Spender

Feel like you’re always saying yes to fun plans in the moment, then worrying about your savings account later? You might be a spender.

Sure, your friends might be jealous of those fabulous vacations, new shoes, or whatever your spendy vice may be. But how’s that retirement account looking? Trust us–overspending is easy. Allison, founder of the Inspired Budget blog, shares how paying off $111,000 in debt on a teacher’s salary allowed her to take control of her finances.

If any of this is sounding familiar…

Exercise Budget Discpline: If you don’t have a monthly budget yet, make one. Go for realistic and attainable: tighten down the hatches too much and you’ll just get frustrated.

Build an Emergency Fund: Your first major savings goal should be to have 3 months of income in an Emergency Savings account. (It’s really, really expensive to rely on credit cards or loans during a financial setback.)

Get Strategic About Debt: The way to tackle debt is to eat the beast bite by bite. Prioritize paying off your highest-interest debt first.

Every Dollar Counts: It’s not about ridding yourself of life’s luxuries, it’s about making sure they’re worth it. If you’re an online shopper, try implementing a ‘cool-off’ rule: let that item sit for a few days to avoid impulse purchases.

The Saver

If you often pass on opportunities because of the cost, or if the idea of spending unnecessarily causes stress, you might be a saver. Savers prioritize long-term financial security over immediate gratification. But there is such thing as TOO frugal.

Tips for a balanced financial approach:

Automate Your Finances: Set up automatic payments to your savings accounts, retirement accounts, and bill pay to keep your credit card score up, stress down, and late fees at bay.

Invest for Growth: If your money’s sitting in a traditional savings account (the digital equivalent of stashing under a mattress), chat with a Westerra expert about better investment options.

Optimize Emergency Funds: Make sure your emergency fund is kept in a high-yield savings account or money market account.

Budget for Fun: Yep, you heard us right. Add in a (reasonable!) line item into your budget for entertainment, extra pampering, a shopping trip, travel, or whatever brings you joy, and actually use it. Money does, occasionally, buy a little bit of happiness.

The Money Monk

Feeling like you subscribe to, ‘Money is the root of all evil’? Sitting on the sidelines of the financial game? Money Monks often live humbly, resulting in financial stability, but can reglect to plan for the future. You don’t have to be corrupt, over-consuming or greedy to build–and embrace–long-term personal wealth.

Simplify Finances: It’s fine if you don’t like to manage money. Automate everything, consolidate the number of accounts, and minimize unnecessary expenses.

Value-Based Spending: Did you know that points accrued through Westerra can be donated to charity? There are plenty of great ways to bank, spend, and invest ethically.

Mindful Saving: Carve out specific financial goals. Will your home need a new furnace down the road? Ready for that across-the-world trip you’ve been dreaming about? Add specific savings line items to your budget.

Plan for the Future: Retirement can feel like it’s a lifetime away. But the sooner you start saving, the better off you’ll be. Start contributing to a retirement account like an IRA or 401K.

The Avoider

Impressed that you’ve read this far? Feeling anxious when the topic of money comes up? If you lack financial knowledge and tend to push off bill paying and account management for another day, it sounds like you’re an avoider.

If you’re feeling a bit called out, have no fear: tips are here.

Budget, Then Automate: Set pen to paper, and get your budget in order. Once that’s done, automate it ALL. Credit card bills, utilities, transfers into savings,you name it.

Use Your Tools: If budgeting seems daunting, let technology do the work for you. Find a financial app to track your spending. You can even set a Westerra alert to let you know if your account dips too low.

Set Attainable Goals: Will you be a Wall Street stock-trading pro by tomorrow? Doubtful! Can you set aside a few minutes, a couple of times a week, to work on financial literacy and get your accounts on track? We say, yes!

Tap in an Expert: Call a pro–it’s what we’re here for. The very best time to start your financial journey was years ago. The second best time is right now.

Our experts at Westerra are here to help ALL the Spenders, Savers, Money Monks and Avoiders optimize their financial approaches. Give us a call at 303-321-4209, stop by at your nearest branch location, or send us a secure message through Digital Banking to get started.